Tesla Implements Hiring Freeze, May Cut More Jobs in Next Quarter By Investing.com

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By Senad Karaahmetovic

Tesla (NASDAQ:) has reportedly told staff that more layoffs are expected in the next quarter, according to a report by Electrek.

Additionally, the electric vehicle (EV) maker has encountered a hiring freeze in place. The report comes after CEO Elon Musk told Tesla staff in June that the EV maker would cut its salaried workforce by 3.5%. Overall, Musk said at the time that Tesla would cut 3.5% of its workforce.

According to Electrek, Tesla has told some employees it is stopping hiring for the time being. This could pose a problem for some investors, given that the electric vehicle company has several high-growth businesses, including setting up new factories in Germany and Texas.

Tesla stock is down 60% year-to-date, with Musk attributing that response to a tough macroeconomic environment.

The electric vehicle maker cut prices in China and the United States as it reportedly faces weakening demand. {Analysts of the German Bank (ETR:) today cut fourth-quarter shipment estimates, reflecting “some macroeconomic weakness, particularly in China, as well as the first-quarter 23 U.S. shipments report from some consumers.” in order to qualify for IRA incentives.”

Tesla stock price was initially up 2.6% in pre-opening after Musk confirmed he was looking to repay someone to replace him as CEO of Twitter (NYSE:). As of 06:36 ET (11:36 GMT), Tesla stock is up 1.3% following the Elecktrek report.

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