Tesla shares fell 9% on Friday due to a report by Elon Musk that he is considering laying off 10% workers. There are also new questions from U.S regulators about complaints about electric cars braking without reason.
Musk sent an email to Tesla executives Thursday titled "pause all global hiring" in which he stated that he was feeling "super bad" about the economy, and that the company should reduce staff, according to Reuters.
According to regulatory filings, Tesla had approximately 100,000 employees around the world according to its subsidiaries.
Tesla shares have lost almost one-third their value since April 1, shortly after Musk publicly announced the purchase of Twitter.
Tesla shares dropped $66 to $709 on Friday. Two months ago, shares traded at $1,150.
While delivering a speech in Rehoboth, Delaware on Friday's jobs report, President Joe Biden was asked about Elon Musk, who said he is pessimistic about America's economy.
Biden replied, "While Elon Musk is talking to that, Ford increases their investment overwhelmingly. I think Ford invests more in new electric cars." "Six thousand new workers -- union employees, I might add -- have been added to the Midwest. Stellantis, the former Chrysler Corporation, is also investing in electric vehicles. Intel is adding 20,000 jobs in computer chips manufacturing. You know, good luck to him on his trip up the moon. I mean, I don’t know.
Musk later thanked Biden in a tweet.
A $20 billion chip plant will be built in Ohio by Intel. It will employ approximately 3,000 people. Intel claims there will be approximately 7,000 jobs in construction, as well as thousands of technical jobs plus indirect jobs in housing, restaurants, and health care.
Tesla stock was also affected by other issues on Friday
Friday's report by government regulators stated that over 750 Tesla owners complained that their partially-automated driving systems suddenly stopped working on roads.
In a detailed information request to Tesla, the National Highway Traffic Safety Administration disclosed the number. It was posted on the agency’s website.
This is the fourth formal investigation into the Texas automaker over the last three years. NHTSA has been supervising 23 Tesla recalls from January 2021.