Elon Musk tells Tesla execs to cut jobs

The CEO seems to be implying a slowdown in growth for a richly valued company.

Electric vehicle (EV) leader Tesla (NASDAQ: TSLA) has continued to build on its industry lead recently – in just the past few months,

It opened two new production facilities to grow its global reach.

But it appears that CEO Elon Musk is tapping the brakes. In an internal email Thursday, Musk told his executive team to cut jobs and pause new hiring, according to a report by Reuters.

A follow-up email Friday specified the job cuts will be for salaried employees, which includes management and supervisory roles.

With the stock still at an extremely high valuation based on traditional metrics, shareholders might want to look at Musk's comments as a not-so-subtle warning.

Tesla opened one of its new plants in Germany this March, marking a key expansion point.

The company had been supplying the European market from its plant in Shanghai; now, each of those plants can focus on its own rich customer base.

In its 2021 outlook, the International Energy Agency predicted China and Europe would continue to lead global EV sales through the rest of the decade. 

And in April, Tesla began production from its new facility in Texas,

Its second in the U.S. Both new plants will help the company achieve its production growth plans for an approximately 50% annual increase over the next several years.

But Musk's internal memos may have clouded that goal.


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