Is it a global crash. Or can we just blame Elon?
I try not follow what Elon Musk is up to too closely, but this story did get me wondering.
Basically, he’s canning work-from-home at Tesla:
In a memo headlined “Remote work is no longer acceptble” [sic], Musk wrote that “anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla. This is less than we ask of factory workers.”
In a reply to a Twitter follower asking for “additional comment to people who think coming into work is an antiquated concept”, Musk wrote: “They should pretend to work somewhere else.”
About 30% of US office workers are still working from home, according to Nick Bloom, a Stanford economics professor and co-founder of Working from Home Research Project.
It struck me as odd.
First, for a company that has literally built its fortunes on being all about ‘the future’, these seems pretty backward looking.
Second, the jobs market in America is still incredibly strong. The unemployment rate last week came in a just 3.6%.
Given we know that pretty much every worker wants at least some flexibility in their work life, and that tech workers are particularly fussy about this, it seems like a guaranteed way to have some of your best people walk off the job.
But then maybe that’s what Musk wants. Because we also learnt last week that he’s freezing hiring and reducing headcount by about 10%.
The leak came from an internal email sent to Tesla executives on Thursday, titled “pause all hiring worldwide”.
The world’s richest person has decided to cut 10 per cent of Tesla’s 100,000-strong workforce, apparently telling top executives at the company he has a “super bad feeling” about how the economy is tracking.
Yikes! Musk has a feeling? Oh no.
But what does that feeling tell you? Is it about the American and global economy in general, or about Tesla specifically?
Because Tesla has been struggling. It’s share price is down over 40% since the start of the year, as it fails to make inroads into China.
But while Tesla is cutting staff, other auto-makers are hiring, as President Biden was keen to point out:
US President Joe Biden shot back Friday at Mr Musk's comments about the US economy, rattling off a number of American companies who are growing.
“While Elon Musk is talking about that, Ford is increasing their investment overwhelmingly and I think Ford is increasing the investment in building new electric vehicles, 6,000 new employees — union employees I might add — in the Midwest,” Mr Biden responded.
“The former Chrysler Corporation, Stellantis, they're also making similar investments in electric vehicles. Intel's adding 20,000 new jobs making computer chips,” he added.
“So, you know, lots of luck on his trip to the moon,” Mr Biden said.
Lol. Imagine getting trolled by the POTUS. No wonder Musk feels like he’s the central character in his own comic book.
So look, the thing I take from this is that there’s a lot of doom and gloom out there. Tesla seems to typify it.
But a lot of the doom and gloom is company and bubble specific. Tech stocks like Tesla got massively over-bought as retail investors piled their government handouts to anything that sounded sexy and was run by somebody with a nice hair cut.
But the party couldn’t last.
But just because the balloons are popping on Elon Musk’s ballroom, doesn’t mean that things are going to be rough for the rest of us.
I think we’ll be ok.
JG.
Edwin Serra says
You’ve got to your hat to the man.. Let’s face it , you do not become the world’s richest by working from home.. You’ve got to be where the production is taking place, and in close contact with your key staff but interact with the workers on the floor almost on a daily basis.. The you happen to find yourself smack in the middle of a pandemic that threatens to derail your project. .,and you are supposed to know the answer to every problem an obstacle that arise constantly. .,ever changing and with no similarity to previous scenarios. .,so you recall all your great thinkers, problem solvers. inventors, risk takers, visionaries to gauge their inputs, but suddenly find that all those so called problem solves are none other than yourself… Why ?..,because of the old cliche ” or at least I just made it up “It,s easy to talk BIG and be generous with someone else’s money. I have a lot of respect for Elon’s entrpreneurial skills and somewhat humble approach. He has built an empire with his own money and shareholders vision. Present uncertainty does take it’s toll and we only need to look at entrepreneurs like the late Robert Holmes a Court, who almost single handedly almost bought BHP, and his orchestrated fall ,and what that did to him,. Personally the whole idea of working from home is not suited to most individual who may have either a vested interest or strong desire to see the company that is keeping him/her employed and is therefore guaranteeing a future for him/her and family. I know what you’re thinking…What lunatic would turn up a *.00 am daily among heavy traffic, and return home in even worse traffic, when this recent BONANZA of working from home just became possible? Do you ever spare a thought at the risk and hard work involved in setting up, a business, ensuring that you have found the best possible location, for the budget that dictates every step of the way, equipment, the right stuff and the right number of staff especially at the beginning when you could be running at a loss until you are starting to show reasonable Turnover. .,,and the next critical 2 to 3 years, when many risky decisions are made, overcapitalising, ,and trying to to achieve an EBITDA that would see the company recoup all of the capital injected. the long hours and sleepless nights, your health always balancing on knife’s edge. .,and you can see how easy it is for the whole thing to slip away because a wrong decision. .,or a comment that was misinterpreted, or blown out of context. .etc.. Well. to these people who may be reading this but may not have the slightest notion.. ,or interest in it…,let alone having the capability to understand even a portion of my comments herewith.., I wish you Good luck….with trying to find alternative work ,,or work from home., from your bed. from the pub etc.. because you are not the backbone of the company but the bludger who is selfish.., self centred and does not give a RAT;s if your employer. .,with all his risks and problems to keep you employed ..,succeeds.., fails or even that HE?SHE also is human and has a right to enjoy the fruits of the hard work and huge input he has already put in for years. .,and now it is time for him to relax. .,knowing his companies..,enterprises are in full control,..,by the the best Staff who are hands on and caring…..
Anthony Clay says
Thank you Edwin for your lengthy reply to the rubbish expounded by Jon Giaan. His sentiments are pro-Biden and like the rest of the woke mind virus is making Democrates Twitter and Bitter.
Adsi says
Here here.