Tesla Implements Hiring Freeze, May Cut More Jobs 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 from Electrek.

In addition, the electric car manufacturer is implementing a hiring freeze. The report comes after CEO Elon Musk told Tesla staff in June that the electric car maker would cut its 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 that they will stop hiring for the time being. This could pose a problem for some investors, as the electric car company has several high-growth businesses, including setting up new factories in Germany and Texas.

Tesla shares are down 60% year-to-date, with Musk attributing the decline to a difficult macroeconomic environment.

The electric carmaker cut prices in China and the US as it reportedly faces weakened demand. {Analysts of German bank (ETR:) today cut delivery estimates for the fourth quarter, reflecting “some macroeconomic weakness, particularly in China, as well as the postponement of first quarter 23 shipments in the United States by some consumers.” to qualify for IRA incentives. “

Tesla shares initially rose 2.6% before the open after Musk confirmed he was actively looking for someone to replace him as CEO of Twitter (NYSE: ). As of 06:36 ET (11:36 GMT), Tesla shares are up 1.3% following the Elecktrek report.

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