Elon Musk News

Another Elon Musk-leaked email suggests Tesla is going to layoff 10% of salaried employees


Tesla CEO Elon Musk is taking some harsh steps toward the HR department of his company, after warning remote working executives earlier this past week, he wants to lay off around 10% of the automaker’s salaried employees.

Musk has a “super bad feeling” feeling about the economy and he thinks Tesla is overstaffed in many areas, as reported by Reuters and seen in leaked emails (below).

Tesla’s (TSLA) share price plunged to $703.55 at market close on Friday, 3rd June 2022. The market cap of the automaker has shrunk to $728.88 billion which was more than $1.1 trillion at the start of this year.

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Here’s Musk’s leaked email in its entirety:

Tesla will be reducing salaried headcount by 10%, as we have become overstaffed in many areas.

Note, this does not apply to anyone actually building cars, battery packs, or installing solar. Hourly headcount will increase.


In the 2nd week of May, Musk said that Tesla is facing unprecedented demand and the company might even stop taking orders beyond a certain time limit. Elon Musk’s lay-off email does not hint that the demand for Tesla vehicles id decreased as the technical and engineering staff that’s working in the field or on the factory floor will not be affected by this layoff.

According to the SEC filings, Tesla had 100,000 employees at the end of 2021. But the automaker has never shared a segmented report that highlights the technical and non-technical staff. The last two emails by Musk addressed the “office” staff, not the people actually working on-ground.

By increasing the “hourly headcount”, Tesla is actually going to increase vehicle production, not decrease it, which means the demand is still strong and growing.

Some analysts think this layoff campaign by Tesla is nothing to worry about and the automaker has done it before in the previous years and has come out of the situation even stronger.


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By Iqtidar Ali

Iqtidar has been writing about Tesla, Elon Musk, and EVs for more than 3 years on, many of his articles have been republished on CleanTechnica and InsideEVs, maintains a healthy relationship with the Tesla community across the Social Media sphere. You can reach him on Twitter @IqtidarAlii