Shares of Tesla faced a plunge after CEO Elon Musk had announced that it would be cutting its staff. Last week the company had sent mails, but a new Tweet from the company has contradicted the mails sent earlier about plans to cut jobs. It was reported last week that CEO Elon Musk had sent emails to the staff members stating that it would freeze hiring that would be a part of the move to cut 10 percent of the staff while explaining that he was having a bad feeling about the company.
Soon a follow-up email was sent that mentioned that the company would be increasing the hourly staff, but will be reducing the salaried headcount by 10 percent. The email also said that the move is being taken as they have become overstaffed in many areas. Elon Musk in his email also clarified that the resizing of the staff move does not apply on people who are actually building cars, installing solar or making battery packs. But soon Musk’s Tweet on Saturday revealed that it would be increasing the total headcount of the company and added that the number of salaried people would remain flat. Soon just hours later the Tweet, Musk confirmed that the earlier plan to cut staff would remain in place.
The above pattern has indicated that it is still not clear if Musk would proceed with the 10 percent salaried headcount cut. Tesla has not responded in an official statement to comment about the emails that have been sent to the employees. After a leading daily reported about the emails to the employees, the shares of Tesla fell by 9 percent on Friday, but then on June 6, 2022, the shares were again up by 2.8 percent in early trading. There was another factor that affected the stock – when Musk threatened that he would walk away from the purchase of Twitter.
The shares of Tesla were hurt in recent times when Musk had showed interest in buying Twitter. The investors had expressed concerns that it would affect or distract the electric automaker from running the electric car giant effectively.
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