Elon Musk has reportedly sent an email to executives saying he has a “super bad feeling” about the economy and wants to cut jobs by 10% and freeze hiring.
Tesla may be the undisputed leader in the electric vehicle market, but that doesn’t mean it’s immune to the effects of the economy. In an email seen by Reuters, Musk expressed unusual concern for the state of the economy and the impact it might have on the company. Some experts are already calling Tesla the “canary in the coal mine” for the auto industry in general.
“Tesla’s not your average canary in the coal mine. It’s more like a whale in the lithium mine,” said Morgan Stanley analyst Adam Jonas.
“If the world’s largest EV company warns on jobs and the economy, investors should reconsider their forecasts on margins and top-line growth,” he added.
As of the time of writing, Tesla’s stock was down more than 9% on the news. It remains to be seen what impact the warning will have on the rest of the auto industry in the coming days and weeks.