Elon Musk Reinvests in Tesla and Lays off 3,000

From self-driving cars to flamethrowers, it can be hard to predict what Tesla Motor’s CEO, Elon Musk, will do next, yet the announcement of 3,000 expected layoffs (9 % of the company’s workforce) came as an even bigger surprise than usual. The announcement, made on June 11, 2018, was followed the very next day with news that Musk purchased $25 million of Tesla stock. According to Matt Weinberger, Wall Street views this move as an expression of Musk’s confidence in the company’s stability and future.

According to by Danielle Paquette and Peter Holley of the Washington Post, Musk delivered the news of the impending layoffs to employees via email with the clarification that factory workers involved with manufacturing the next Model 3 cars would not be affected – only salaried “white-collared” employees will be affected.

More interestingly, Musk cites that his private email to staff was leaked to the media resulting in his action to publically release it. The Washington Post’s article mentions that Musk’s ability to lead multiple operations at once has been called into question by at least one shareholder who attempted to strip the CEO of his position as Chairman of the Board last week.

To search for Tesla contracts visit RealDealDocs.