Home Business Elon Musk Says Tesla’s New Factories Are ‘Gigantic Money Furnaces’

Elon Musk Says Tesla’s New Factories Are ‘Gigantic Money Furnaces’

by Atlanta Business Journal

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Musk details Tesla staff cuts

STORY: Elon Musk set out on Tuesday (June 21) how the job cuts he proposed at Tesla will happen.The electric carmaker’s CEO said a 10% cut in salaried staff would happen over three months.Earlier this month, Reuters reported Tesla needed to cut staff by about that amount, and had frozen hiring worldwide.Musk said the layoffs would apply only to salaried workers – meaning total headcount would be down 3.5% Speaking at the Qatar Economic Forum, he also predicted a U.S. recession could be on its way.”Well, I think a recession is inevitable at some point. As to whether there is a recession in the near term, I think that is more likely than not. Certainly isn’t a certainty, but it appears more likely than not.”Earlier this month, Musk wrote that he had a “super bad feeling” about the economy. His thoughts echo other business leaders including JPMorgan Chase CEO Jamie Dimon.He said in early June that a ‘hurricane is right out there down the road coming our way’.A potential U.S. recession has been a growing concern for chief executives, the Federal Reserve, and the Biden administration.President Joe Biden said Monday (June 20) he felt a U.S. recession was not inevitable.Although the country is tackling higher gas prices and inflation is at its highest in 40 years.

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