Everyone me kevin here: oh my gosh, elon musk, apparently just leaked in the email, pausing all hiring worldwide. But beyond that, having a quote super bad feeling about the economy and saying that tesla needs to cut about percent of its workforce. They've got about a hundred thousand people employed at tesla that would bring them down to about ninety thousand removing about ten percent. This comes just a couple days after elon made a lot of waves, suggesting that if you want to pretend to work somewhere, don't pretend to work at tesla, because work from home is no longer acceptable unless you work at least 40 hours a week.

Sending this huge signal to the workforce community that elon musk believes if you're a work from homer. You just pretend to work. He says that factory workers are required to work 40 hours a week and if you work in an office, you better work 40 hours a week inside of a tesla facility, where your work is actually required, like if you're doing human resource work. You better not be working in office in arizona if you're doing human resource work for the fremont plant.

You've got to be in the actual office and when i first heard that i kind of thought to myself man, i think elon kind of just wants to give the boot to some people. Well now, here we go middle of the night. Reuters.Com breaks an exclusive email leak that all of a sudden email sent an email or elon, sent an email to executives, suggesting that musk has a bad feeling about the economy and that we might be in a recession and therefore need to pause hiring worldwide. This echoes what he actually said at the all-in event where he made a waves over his twitter acquisition and sort of alluded to the idea of potentially renegotiating his twitter purchase.

This morning, when i saw the headline elon musk wants to cut 10. I was thinking cut 10 off the price of the twitter deal, but no, he wants to cut 10 off of tesla jobs. Now i want to talk about a few more of these things, but quick note. If any of this stresses you out, because you've got tesla shares like me, get yourself life insurance in as little as five minutes by going to mckevin.com life and check out our new sponsor link down below as well.

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So let's understand this. What's really interesting about this whole 10 layoff email is that tesla's career website is still active, and this makes me think a lot about margin see back when the covet pandemic hit. One of the things i talked about is the first people to get laid off. Are the most inefficient people they're the people, the company's kind of like you know what all right we could probably do without anyway, we got them because they're okay they're trained, but you know we could kind of do without them.

Okay, the inefficient folks are the first people who get laid off and two days after elon starts complaining about work from home, which i'm not casting judgment. I work from home, but let me put it this way as a startup, i don't. I don't do work from home either. I can't stand it.

I think we got to work together and then we can actually like bounce ideas off each other and grow for a startup. That's really important and to some degree twitter to some degree. Tesla kind of still is a startup, so so maybe i kind of share some of that sentiment with elon, but the careers website is still up at tesla, which i think is really really interesting. That wait a minute.

Why is the careers website up if they need to lay off 10 of their staff, and this, in my opinion, reiterates the refinement thesis remember when we had the covet pandemic? Companies laid off thousands of workers and then what could they do? After the temporary layoffs and furloughs, oh we'll just hire back the best, they lay off ten thousand. They hire back two thousand. That's the super corporate way of filtering your workforce and actually increasing what margin. It's all about increasing margin.

If you can weed during the covet pandemic and now after everything's gotten bloated, you could go through and cut the weeds again so to speak and get rid of the least efficient part of tesla. What do you do? You increase margin? You start with elon's opinion of work from home, and then you move on to the other less efficient areas while still hiring, because what do you want? You still want the best tech. You still want the best engineers, the battery developers, the ai developers. You get a really good new developer that comes in and says, hey, look i got to get out of google, i got to get out of apple or i'm at a startup or whatever.

I want to come work for tesla or spacex or whatever you still hire them, but then you fire two other people who are way less efficient and aren't bringing any new skills to the company. It's actually kind of the perfect time to do that when you're able to do so under the guise of a recession, remember at the all in uh, podcast event in miami. I was present there when elon musk was talking about that twitter negotiation, which now i definitely think that elon's going to be asking for a big, renegotiated price on twitter. But at that all-in event he said that he believed we're probably in a recession right now and this email today, uh that's leaked from elon.

In my opinion, these these elon leaks are not unintentional. I kind of think elon sends emails, knowing that they're going to get leaked and they're kind of, like purposeful leaks, to get the word out that oh this is, i guess, how we're announcing layoffs and uh. You know hey if you could do it under the guise of a recession. What do you get to increase margin, everything's about increasing margin, so planned leak to increase margin? This is not good for the twitter deal.

I think it reiterates a more cuts to come for twitter, but also b, probably a lower price they're still hiring because they still want the competitive advantage. So i don't expect that hiring freeze to actually be accurate. I think because the reuters email suggested, let's freeze, hiring worldwide. They get good apps, i'm highly believing that they're still going to hire but they'll weed the other 10 that they need to uh still sucks for those 10 percent uh.

They are still ramping substantially at berlin and austin, and these are things that kind of make me scratch my head a little bit like wait, a minute. How are you ramping factories, but having a hiring freeze a little confused by that, unless they've already hired the shifts that they need, but then i'm kind of like? But if you have so much demand like at that all-in event where you said, oh, we might actually pause reservations for cars which they ended up doing a few days later. They paused reservations for the cyber truck because they're like we have enough orders, i mean some of the model: x's you're, waiting, 12 or 9 to 12 months for part supply chain constraints, part ramping constraints and just part lots of demand right. So they've got the demand, but then it seems like why why, during a ramp of two factories and this indonesia, battery ev plant that you're expecting to manufacture or expecting to build uh where you're going to manufacture batteries and electric vehicles? Why why, during these ramps and the potential opening of a new factory in indonesia, would you be freezing hiring so a little confused, not exactly sure how this is all going to play out, but tesla stock, at least at the time of this recording, is down about Four percent on this news: this is what companies do during a recession, and this is why i've been believing since about february that you know what we're probably in a recession.

Now you get the cuts now. I really do believe that companies are to some degree misleading us like when apple was asked. Apple's tim cook was asked three times during the last earnings call about demand. He just kept answering about supply.

That's like wait a minute. What are you hiding from us? There's a demand problem on the horizon, i think tesla's at least seeing issues uh in in the entire economy. However, i've always believed that tesla, at least to some degree, was insulated because they appeal to that higher income demographic, but i mean, if you're, going for a 10 cut and you're seeing warning signs in the economy that we're in a recession and things might get worse. Jamie dimon talking about bracing for a hurricane, i don't know they're saying something, obviously, that we aren't and it is cause for concern thanks.

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