Jun 3, 2022 - Technology

Reality clobbers Elon Musk

Tesla CEO Elon Musk speaks during the official opening of the new Tesla electric car manufacturing plant on March 22, 2022 near Gruenheide, Germany
Tesla CEO Elon Musk speaks during the official opening of the new Tesla electric car manufacturing plant on March 22, near Gruenheide, Germany. Photo: Christian Marquardt - Pool/Getty Images

Tesla CEO Elon Musk was caught in a firestorm this week over remote work and is now saying he'll cut a portion of jobs at Tesla, leading shares in the electric vehicle to dip on Friday.

The big picture: The billionaire's bid to buy Twitter has put a new spotlight on his other companies.

  • Here's everything that's happened with Musk this week:
Musk said he wants Tesla to cut 10% of jobs
  • The Tesla CEO reportedly said in an internal memo to staff this week that he is prepared to cut staff by about 10%, citing a "super bad feeling" about the economy.
  • Musk's email, titled "pause all hiring worldwide," was sent Thursday to Tesla executives, Reuters reports.
  • Musk's remarks on the economy drew a response from President Biden, who said on Friday: "While Elon Musk is talking about that, Ford is increasing their investment overwhelmingly."
  • "Lots of luck on his trip to the moon. I don't know," Biden added.
He trashed remote work
  • Tesla employees "should pretend to work somewhere else" if they're not willing to return to their offices, Musk tweeted on Wednesday.
  • "Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla. This is less than we ask of factory workers," he said in a leaked memo to staff, Bloomberg reports.
  • Musk's views on remote work could sway the minds of those still on the fence about remote work or change some policies altogether, Axios' Hope King reports.
More than 750 Tesla drivers have complained of unexpected braking
  • More than 750 Tesla drivers have complained about unexpected braking while operating the electric vehicles' partially automated driving systems, according to an investigation by the National Highway Traffic Safety Administration.
  • NHTSA revealed the figures Friday in an information request letter to Tesla, which now has until June 20 to respond to questions raised in the probe, Reuters reports.
Tesla shares drop
  • Tesla shares dropped 8.5% on Friday after reports of his plan to cut 10% of staff and implement a hiring freeze surfaced.

Go deeper... Musk: Twitter deal "cannot move forward" unless spam questions answered

Go deeper