(DailyVantage.com) – Tesla is the most popular electric car company in the world. Yet, like any other business, it’s subject to market ups and downs. Initially, the company’s stock grew exponentially, reaching over $1,000 per share earlier this year. It’s now significantly less, hovering in the low $100 share price lately. Some attribute this to CEO Elon Musk’s distraction with Twitter, while others say it results from a suffering economy. Recently, it came to light that Tesla will not only cease hiring for the short term but also plans to lay people off starting next year.
Another Hiring Freeze?
This instance isn’t the first time Tesla has initiated a hiring freeze. In June, Musk asked company executives to pause recruiting and eliminate 10% of the existing workforce. At the time, he justified his actions over concerns about the economy. However, he quickly reversed that decision, and the company actually started hiring more people to fill vacant positions to fulfill an increasing demand for electric vehicles.
Now, it seems Tesla is ready to put the brakes on hiring once again, according to Electrek, a news website. This time, it doesn’t appear to be a full freeze as the company still has manufacturing positions open. But, what’s worrisome is Tesla’s plans to lay off workers during the first quarter of 2023. There’s no indication as to how many people it plans to release.
What This Means Going Forward
While layoffs are often a temporary means to solve a current issue, Tesla has shown signs of struggling in recent months. Electrek reported that the company is offering discounts on its vehicles, $3,750, in the United States for people who took possession of a Model 3 or Y by the end of December. To boost sales, it also offered 10,000 free Supercharging miles as a perk for buyers who took delivery in December. According to Electrek, this could signal an urgency from within Tesla to sell vehicles and meet demand.
Then, there’s the issue of cancellations, which Tesla has seen a lot of recently. The problem is twofold: long delivery times and people wanting to take advantage of the $7,500 tax credit that goes into effect next year.
For now, Tesla is still going strong despite the report of imminent hiring freezes and layoffs. The vehicles are still in demand and selling, and that trend doesn’t seem to be slowing down anytime soon.
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