The richest person in the world says he has a “super bad feeling” about the economy. It’s worth taking a moment to consider the messenger and the wider context. | Fin24
It still matters, of course, because Musk’s share of the market’s addled collective brain is far higher than 2%. If the CEO of this fast-growing car company valued at roughly $800 billion — more than double JPMorgan’s market cap — suddenly wants to cut 10% of Tesla’s workforce, then things must be really bad.
In one sense, May’s US autos sales figures comport with this. The seasonally adjusted annual rate of 12.7 million units was down 11% compared with April, and that’s a number that would usually spell recession. But these are weird times in the US autos business due to the pandemic-related disruption of supply chains.
Over the past year, auto sales have been held back by constrained supply, not weak demand — try buying a car and see how much the dealership gouges you for one of the models on its sparse lot. Despite the drop in sales, already thin inventories actually fell slightly in May. The industry had just 22 days of demand sitting around at the end of the month, a day less than in April and roughly a third of the pre-Covid level. Earlier this week, Ford Motor Co. announced a $3.
Tesla may have specific reasons for cutting jobs. For one thing, its workforce has more than doubled in the past three years to around 100,000. While revenue has risen 36% a year, compounded, in that time, the rate per employee is 7%.
Conflicting signals are par for the course with Musk. Also making headlines in the past 24 hours was his tweeted claim that Tesla “may” — may, folks, may — have a
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Chiefs outclass Waratahs in Super Rugby quarter-finalThe home side conjured five tries to two, setting up victory with superior finishing to the Australian outfit, who were competitive in most departments but guilty of mistakes at the attacking end.
Read more »
Three delicious and super easy chakalaka based recipes | The CitizenThese chakalaka straws, chakalaka dip, and fried pap balls are the perfect finger foods to serve at a lunch or dinner party.
Read more »
'Super bad feeling': Musk warns of job cuts at TeslaTesla CEO Elon Musk has a 'super bad feeling' about the economy and wants to cut about 10% of jobs at the electric car maker, he said in an e-mail to executives.
Read more »
'Super bad feeling': Musk warns of job cuts at TeslaTesla CEO Elon Musk has a 'super bad feeling' about the economy and wants to cut about 10% of jobs at the electric car maker, he said in an e-mail to executives.
Read more »
Campaign launched to stop Musk buying TwitterAdvocacy groups on Friday launched a campaign to stop Elon Musk from buying Twitter.
Read more »
OPINION | Enforcing competition would ease food price hikes | Fin24Regional economies must be better integrated to ensure food security. Otherwise, food price hikes will keep on coming, says Grace Nsomba.
Read more »