Tesla Announcing MASSIVE Layoffs | Bad RECESSION!!

everyone me kevin here oh my gosh elon

musk apparently just leaked in the email

pausing all hiring worldwide but beyond

that having a quote super bad feeling

about the economy and saying that tesla

needs to cut about percent of its

workforce they've got about a hundred

thousand people employed at tesla that

would bring them down to about ninety

thousand removing about ten percent this

comes just a couple days after elon made

a lot of waves suggesting that if you

want to pretend to work somewhere don't

pretend to work at tesla because work

from home is no longer acceptable unless

you work at least 40 hours a week

sending this huge signal to the

workforce community that elon musk

believes if you're a work from homer you

just pretend to work he says that

factory workers are required to work 40

hours a week and if you work in an

office you better work 40 hours a week

inside of a tesla facility where your

work is actually required like if you're

doing human resource work you better not

be working in office in arizona if

you're doing human resource work for the

fremont plant you've got to be in the

actual office and when i first heard

that i kind of thought to myself man i

think elon kind of just wants to give

the boot to some people well now here we

go middle of the night reuters.com

breaks an exclusive email leak that all

of a sudden email sent an email or elon

sent an email to executives suggesting

that musk has a bad feeling about the

economy and that we might be in a

recession and therefore need to pause

hiring worldwide this echoes what he

actually said at the all-in event where

he made a waves over his twitter

acquisition and sort of alluded to the

idea of potentially renegotiating his

twitter purchase this morning when i saw

the headline elon musk wants to cut 10 i

was thinking cut 10

off the price of the twitter deal but no

he wants to cut 10 off of tesla jobs now

i want to talk about a few more of these

things but quick note if any of this

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folks so let's understand this what's

really interesting about this whole 10

layoff email is that tesla's career

website is still active and this makes

me think a lot about margin see back

when the covet pandemic hit one of the

things i talked about is the first

people to get laid off are the most

inefficient people they're the people

the company's kind of like you know what

all right we could probably do without

anyway we got them because they're okay

they're trained but you know we could

kind of do without them okay the

inefficient folks are the first people

who get laid off and two days after elon

starts complaining about work from home

which i'm not casting judgment i work

from home but let me put it this way as

a startup i don't i don't do work from

home either i can't stand it i think we

got to work together and then we can

actually like bounce ideas off each

other and grow for a startup that's

really important and to some degree

twitter to some degree tesla kind of

still is a startup so so maybe i kind of

share some of that sentiment with elon

but

the careers website is still up at tesla

which i think is really really

interesting that wait a minute why is

the careers website up if they need to

lay off 10 of their staff and this in my

opinion reiterates the refinement thesis

remember when we had the covet pandemic

companies laid off thousands of workers

and then what could they do after the

temporary layoffs and furloughs oh we'll

just hire back the best they lay off ten

thousand they hire back two thousand

that's the super corporate way of

filtering your workforce and actually

increasing what

margin it's all about increasing margin

if you can weed during the covet

pandemic and now after everything's

gotten bloated you could go through and

cut the weeds again so to speak and get

rid of the least efficient part of tesla

what do you do you increase margin you

start with elon's opinion of work from

home and then you move on to the other

less efficient areas while still hiring

because what do you want you still want

the best tech you still want the best

engineers the battery developers the ai

developers you get a really good new

developer that comes in and says hey

look i got to get out of google i got to

get out of apple or i'm at a startup or

whatever i want to come work for tesla

or spacex or whatever you still hire

them but then you fire two other people

who are way less efficient and aren't

bringing any new skills to the company

it's actually kind of the perfect time

to do that when you're

able to do so under the guise of a

recession remember at the all in uh

podcast event in miami i was present

there when elon musk was talking about

that twitter negotiation which now i

definitely think that elon's going to be

asking for a big renegotiated price on

twitter but at that all-in event he said

that he believed we're probably in a

recession right now and this email today

uh that's leaked from elon in my opinion

these these elon leaks are not

unintentional i kind of think elon sends

emails knowing that they're going to get

leaked and they're kind of like

purposeful leaks to get the word out

that oh this is i guess how we're

announcing layoffs and uh you know hey

if you could do it under the guise of a

recession what do you get to increase

margin everything's about increasing

margin so planned leak to increase

margin this is not good for the twitter

deal i think it reiterates a more cuts

to come for twitter but also b probably

a lower price they're still hiring

because they still want the competitive

advantage so i don't expect that hiring

freeze to actually be accurate i think

because the reuters email suggested

let's freeze hiring

worldwide they get good apps i'm highly

believing that they're still going to

hire but they'll weed the other 10 that

they need to uh still sucks for those 10

percent uh they are still

ramping substantially at berlin and

austin and these are things that kind of

make me scratch my head a little bit

like wait a minute how are you ramping

factories but having a hiring freeze

a little confused by that unless they've

already hired the shifts that they need

but then i'm kind of like but if you

have so much demand like at that all-in

event where you said oh we might

actually pause reservations for cars

which they ended up doing a few days

later they paused reservations for the

cyber truck because they're like we have

enough orders i mean some of the model

x's you're waiting 12 or 9 to 12 months

for part supply chain constraints part

ramping constraints and just part

lots of demand right so they've got the

demand but then it seems like why why

during a ramp of two factories and this

indonesia battery ev plant that you're

expecting to manufacture or expecting to

build uh where you're going to

manufacture batteries and electric

vehicles why why during these ramps and

the potential opening of a new factory

in indonesia would you be freezing

hiring so a little confused not exactly

sure how this is all going to play out

but

tesla stock at least at the time of this

recording is down about four percent on

this news this is what companies do

during a recession and this is why i've

been believing since about february that

you know what we're probably in a

recession now you get the cuts now i

really do believe that companies are to

some degree misleading us like when

apple was asked apple's tim cook was

asked three times during the last

earnings call about demand he just kept

answering about supply that's like wait

a minute what are you hiding from us

there's a demand problem on the horizon

i think tesla's at least seeing issues

uh in in the entire economy however i've

always believed that tesla at least to

some degree was insulated because they

appeal to that higher income demographic

but i mean if you're going for a 10 cut

and you're seeing warning signs in the

economy that we're in a recession and

things might get worse jamie dimon

talking about bracing for a hurricane i

don't know they're saying something

obviously that we aren't and it is cause

for concern thanks so much for watching

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