Musk’s warning might be the ‘canary in the coal mine’ moment for the car sector
Tesla CEO Elon Musk’s “very awful feeling” about the economy might be the “canary in the coal mine” moment for the car industry, warning of a recession for a company whose executives have shown no symptoms of anxiety.
Tesla chief executive Elon Musk said the electric carmaker needed to cut about 10% of its workforce in an email to executives seen by Reuters.
Morgan Stanley analyst Adam Jonas: Tesla’s not your average canary in the coal mine.
It’s more like a whale in the lithium mine.
The auto sector was hit two years ago by the onset of the COVID-19 pandemic, which forced the closure of factories.
Tesla CEO’s email to employees sounds far more pessimistic than other manufacturing leaders, an analyst says.
Ford Motor Co (F.N) on Thursday, while reporting monthly U.S. sales, said its inventories continue to turn at record rates.
Morgan Stanley’s Jonas noted Tesla’s revenue per employee of $853,000 is not much higher than Ford’s $757,000.
Industry officials also point out Tesla has its own issues, including possibly hiring too fast compared to its growth.
This report’s information was first seen on Reuters; to read more, click this link.