Elon Musk has warned he has a “super bad feeling” about Democrat President Joe Biden’s economy and plans to slash 10 percent of the workforce at Tesla.
Musk says he will also “pause all hiring worldwide,” according to a leaked email obtained by Reuters.
In the email, Musk raised concerns about the current economic climate and suggests cutting jobs at the electric carmaker.
According to its annual SEC filing, in 2021 Tesla had around 100,000 employees.
“Musk’s bad feeling is shared by many people,” said Carsten Brzeski, global head of macroeconomic research at Dutch bank ING.
“But we are not talking about global recession.
“We expect a cooling of the global economy towards the end of the year.
“The U.S. will cool off, while China and Europe are not going to rebound.”
As Slay News previously reported, J.P. Morgan Chase CEO Jamie Dimon also echoes Musk’s concern:
“I said there were storm clouds, big storm clouds,” Dimon said of Biden’s economy.
“It’s a hurricane,” he warned.
“Right now it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle it.
“That hurricane is right out there down the road coming our way.
“We don’t know if it’s a minor one or Superstorm Sandy.
“You better brace yourself.
“JPMorgan is bracing ourselves and we’re going to be very conservative with our balance sheet.
“We’ve never had QT like this, so you’re looking at something you could be writing history books on for 50 years,” Dimon said about the coming quantitative tightening (QT).
The QT is scheduled to begin this month and result in $95 billion a month in reduced bond holdings.
“I think I was wrong then about the path that inflation would take,” US Treasury Secretary Janet Yellen said.
“As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I didn’t — at the time — didn’t fully understand, but we recognize that now.”