Tesla set for another round of layoffs in early 2023, pauses hiring

SAN FRANCISCO: Elon Musk-run Tesla, who has seen its stock nosediving more than 60 per cent this year, has warned employees about another round of layoffs early next year, along with a complete hiring freeze.

In June, Musk had asked Tesla executives to "pause all hiring" and cut 10 per cent of staff, along with freezing hiring.

The electric car-maker company had resumed hiring during the second half of the year.

The new round of layoffs, according to Electrek, will come in the next quarter (January-March 2023).

"It's not clear how extensive the hiring freeze will be as Tesla is still planning to expand in some manufacturing locations. No further details were made available at this time," the report said late on Wednesday.

Tesla has communicated to some employees that it is stopping hiring for now.

The company also said that teams will be expected to make layoffs during the "first quarter of 2023".

Tesla is facing pressures from its recent steep stock price drop, which began in late September, and got worsened with Musk's $44 billion acquisition of Twitter.

Electric car company Tesla's shares tumbled further to around $137 apiece, its lowest ever, as Elon Musk on Wednesday again blamed global macroeconomic conditions.

Tesla shares are down more than 60 per cent, as Musk is busy micro-managing daily affairs at Twitter.

Tesla bull Ross Gerber tweeted this week: "Tesla stock price now reflects the value of having no CEO. Great job tesla BOD -- Time for a shake up. $tsla."

Musk replied: "As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are not guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop."

Gerber further said that "Tesla needs a media and comms team; Tesla needs a succession plan as well as clarify when Elon will be back from twitter; Tesla needs to communicate about Elon's stock sales and a stand still agreement should be made".

Musk last week blamed the Federal Reserve for the current situation, saying his electric car company is doing better than ever.

Since November 2021, Musk has sold more than $39 billion of Tesla shares.