Musk Says: Tesla's Headcount to Rise Regardless of Cuts

The CEO of Tesla and SpaceX Elon Musk said that his car-making company's headcount will increase regardless of any cuts, Al Arabiya News reported on Sunday.

Musk's statements came a few days after Reuters cited an email sent by the billionaire to his company directors about stopping the hiring process.

The Tesla CEO also expressed in his email the intention of cutting employment by 10%.

Musk highlighted in a tweet that the number of the company's employees will be “fairly flat even as overall headcount rises."

The Chairman of Tesla and SpaceX lost $16.6 billion after the shares of Tesla dropped by 9% this week, Forbes reported on Friday.

The fall of Tesla shares came after Reuters cited an email sent by Musk to the executives of Tesla company asking them to suspend hiring worldwide and work to decrease the employment by 10% due to concerns over the economy in the US.

The report added that Musk informed all directors to pause all hiring worldwide. This directive order came two days after Tesla’s Chief demands to his working teams to return to the office or leave.

The shares of the car making company dropped by 3% in the markets on Friday in the US, and by 3.5 in Frankfurt, Germany stocks by 3.6.

Although the demands for electric vehicles are still strong around the world, Tesla still has issues with starting production in its Shanghai factory.

Carsten Brzeski, a researcher at one of the leading Duch banks, told Business Standard: “Musk’s bad feeling is shared by many people.”

Brzeski added: “But we are not talking about a 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.”