According to Reuters, Tesla’s CEO Elon Musk sent an e-mail to the executives of the company on Thursday saying to pause all the worldwide hiring and planning to “cut staff by around 10%”. Wedbush analyst Dan Ives reacted on Twitter mentioning that Tesla is “trying to be ahead of a slower delivery ramp this year and preserve margins ahead of economic slowdown”.
“Street knows soft deliveries for June Q already on horizon due to China issues/cutting costs prudent now. Street will clearly read this message negatively at first blush; Tesla trying to be ahead of a slower delivery ramp this year and preserve margins ahead of economic slowdown”.
Although, the analyst sees the U.S. automaker ramping bak as soon as next year: “Can ramp back up in 23 and pockets of spending in Austin and Berlin will still ramp aggressive we believe,” Ives said.
“Elephant in the room now remains the radio silence on Twitter deal. Musk more negative on economy, what’s next in Twitter saga. That could be other shoe to drop as Musk navigates current backdrop and bot issue still unresolved in Twitter deal pause,” he concluded.
Earlier this week, Musk had sent another e-mail to the executives regarding changes in the remote work rules. Tesla’s CEO said that executives should be in the office for “40 hours per week, at least”.
Tesla shares are currently trading 3.74% lower at $746.04 per share during Pre-Market.