Elon Musk may cut 10% jobs in Tesla, he has 'super bad feeling' about economy

Tesla CEO Elon Musk intends to cut about 10% of jobs in the company as has a "super bad feeling" about the economy, he said in an email to executives on Thursday.

On Tuesday, Musk told staff to return to the workplace or leave the company, a demand that has already faced pushback in Germany where the company has a new factory.

"Everyone at Tesla is required to spend a minimum of 40 hours in the office per week," Musk wrote in that email."If you don't show up, we will assume you have resigned."

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Inflation in the United States is hovering at 40-year highs and has caused a jump in the cost of living for Americans. At the same time, the Federal Reserve faces the difficult task of dampening demand enough to curb inflation while not causing a recession.

In late May, when asked by a Twitter user whether the economy was approaching a recession, Musk said, "Yes, but this is actually a good thing. It has been raining money on fools for too long. Some bankruptcies need to happen."

Musk's stark warning of a potential recession and the knock-on effect for automakers is the most direct and high-profile forecast of its kind in the industry.

While concerns about the risk of a recession have grown, demand for Tesla cars and other electric vehicles has remained strong and many of the traditional indicators of a downturn - including increasing dealer inventories in the United States - have not materialized.

But Tesla has struggled to restart production at its Shanghai factory after COVID-19 lockdowns forced costly outages at the plant.

[ With inputs from agencies]

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