© Reuters. Tesla (TSLA) implements a hiring freeze, could cut more jobs next quarter – report
By Senad Karaahmetovic
Tesla (NASDAQ:) reportedly told its staff that more layoffs are expected in the next quarter, according to a report in Electrek.
Moreover, the electric vehicle (EV) maker is also implementing a hiring freeze. The report comes after CEO Elon Musk told Tesla staff in June that the EV producer will cut salaried headcount by 3.5%. Overall, Musk later clarified at the time, Tesla will cut 3.5% of its workforce.
According to Electrek, Tesla told some employees that it is stopping hiring for now. This could be problematic for some investors given that the EV company has several fast-growing operations, including ramping up new factories in Germany and Texas.
Tesla stock is down 60% year-to-date (YTD) with Musk blaming the selloff on the challenging macro environment.
The EV company slashed prices in China and the United States as it is reportedly facing weakening demand. Deutsche Bank analysts cut Q4 delivery estimates today, reflecting “some macro weakness particularly in China, as well as postponement of deliveries to 1Q23 in the U.S from some consumers in order to benefit from IRA incentives.”
Tesla stock price was initially up 2.6% in pre-open after Musk confirmed he is actively looking for someone to replace him as Twitter CEO. At 06:36 ET (11:36 GMT), Tesla stock is up 1.3% following the Elecktrek report.
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