Tesla’s market value has evaporated by 600 billion! Musk: Freeze hiring, lay off employees next year, and find a "fool" to take over Twitter

Musk, who just lost his job as the "world's richest man" not long ago, is still dealing with the matter of whether to vote to step down as CEO of Twitter. Here he looks back and sees that his "cash cow" Tesla Alas, the leaves are bald again.

#The end of the year is approaching, and Tesla’s stock price cannot escape the fate of falling continuously. As of the close of the U.S. stock market on Tuesday, the company's stock price fell another 8.05% to a more than two-year low of $137.80. The decline this year has expanded to an astonishing 65.54%.

Twitter is already in a mess, and Tesla is "falling down" again. It is reported that Musk has decided that Tesla, like major Silicon Valley manufacturers in the past few months, will implement a hiring freeze and is expected to start layoffs in the first quarter of next year.

Tesla will freeze hiring and lay off employees next year

According to a source familiar with the situation, Tesla La has begun notifying employees that the company has implemented a hiring freeze and confirmed that there will be another wave of layoffs in the next quarter.

#This is actually not the first time Tesla has taken similar measures. In June of this year, Musk asked Tesla executives to "suspend all recruitment" and reduce the number of employees by 10%.

The CEO gave different reasons for the layoffs to different people, including that he had a "really bad feeling" about the economy. This reason also became the reason why he wanted to "take action" on Tesla a few months ago.

# Compared with layoffs, hiring suspensions are more worrying.

Tesla has been growing rapidly since its inception, or there are always several projects growing rapidly. Currently, it has "super The factory has been recruiting a large number of employees. Not long ago, Musk also transferred Zhu Xiaotong, the head of China, to the United States to be fully responsible for the production capacity of the Texas factory.

According to foreign media Electrek, Tesla is implementing a new hiring freeze and plans to implement a new hiring freeze in 2023, according to a reliable source familiar with the matter. Further layoffs were announced in the first quarter of the year.

It’s unclear how widespread the hiring freeze and layoffs will be, as Tesla is still planning staff expansion at some manufacturing sites and factories. However, according to Musk's management style, everything from expansion to layoffs may be a matter of a tweet.

#While Tesla’s financial numbers set new records nearly every quarter, its stock price has fallen throughout the year.

In addition to the reasons for the electric vehicle industry itself, an important source of funds for Musk’s acquisition of Twitter was the sale of a large number of Tesla shares, especially The decline in Tesla's stock price in the past year is generally closely related to Musk's large-scale stock selling behavior.

#Just last week, Musk sold about 22 million more Tesla shares, worth about $3.6 billion.

Musk has sold 94,202,321 Tesla shares so far this year, at an average price of $243.46 per share, tax, according to financial research firm VerityData. Previous earnings were approximately $22.93 billion.

#No matter how fat the sheep are, they can’t withstand being so crowded by the major shareholders.

#In addition, there have been some recent signs that Tesla's problems are not just in the market.

Tesla recently began offering temporary discounts and offers on its vehicles, and some have speculated that Tesla may be facing some rare demand issues.

Until recently, Tesla shareholders could cling to the idea that while Tesla's stock price was underperforming, Tesla's finances and operations remained virtually unscathed. Now it appears that may not be the case, and there may be some worrying trends within Tesla that are leading to these layoffs and hiring freezes.

#In addition, Tesla is not the only company that is implementing layoffs. Several other companies, including Goldman Sachs and Cisco, have recently announced upcoming rounds of layoffs in response to macroeconomic changes in early 2023.

#On Twitter, Musk was talking about macroeconomic trends as always, and told the outside world that his acquisition of Twitter was responsible for the decline in Tesla’s stock price. scorned the explanation of the reason. He attributed the main reason to the Federal Reserve's interest rate hikes.

He tweeted:

"Simply speaking, it is a bank that guarantees income during droughts and floods. Savings interest rates begin to approach the market rate of return, so people will be more willing to convert money from stocks to cash, causing stock prices to fall."

As for the wide range of outside investment Another factor blamed by critics: Spending too much energy on Twitter has led to Tesla's "main business" being abandoned. Musk's previous vote on Twitter to step down as CEO has ended, with 57.5% of users approving of him. Resign.

## Faced with this result, Musk has stated that he is by no means a power-lover. If someone is willing to take over, he will immediately step down as Twitter CEO and will only be responsible for the software and service teams.

As for the statement that "the CEO successor has been decided", Musk responded: "If you have the ability and level, No one who continues to maintain Twitter is willing to take over this job, and there is currently no successor.

The cash cow Tesla has plummeted, and his position as the richest man has been lost

Although Tesla’s financial performance in 2022 Conditions hit new records almost every quarter, but the stock price didn't go all the way higher.

#On the contrary, Tesla’s stock price has plummeted 65.5% this year, becoming the 11th worst-performing stock in the S&P 500 this year.

Tesla is the fourth-worst performer in the benchmark S&P 500 index this year from a market capitalization perspective

Tesla’s stock price fell 65.5% in 2022, outpacing the declines of its auto rivals and wiping out its market value 600 billion US dollars. In comparison, the tech-heavy Nasdaq Composite Index fell about 30% during the same period.

It can be found that the latest decline in Tesla’s stock price matches the time when Musk acquired Twitter and sold Tesla shares.

#This is why investors called on Academician Ma to give up transforming Twitter as soon as possible and focus on the development of Tesla.

After Tesla froze hiring and announced layoff plans, the stock price did not improve. On Monday, shares fell below $150, which one analyst called "a key front for showing whether the company is weakening."

On Wednesday, the stock price fell 0.2% to 137.57 points. The stock price fell for four consecutive trading days. In the past 13 trading days, it has fallen in 11 trading days. fell.

The company’s shares are down about 62% since their peak in November 2021 and fell in December More than 22%.

Tesla’s recent plunge is worse than its 60.6% plunge from February to March 2020, according to data compiled by Yahoo Finance. It was the worst decline ever.

#The plummeting stock price also means that Musk’s personal wealth has shrunk rapidly. According to Forbes estimates, Musk's current net worth is US$174 billion, which is far lower than the US$320 billion in November 2021.

#Just last week, Musk relinquished his position as the world’s richest man to LVMH CEO Bernard Arnold Bernard Arnault.

##Left: Former richest man in the world; Right: Current richest man in the world

## For Tesla, Academician Ma tried his best. From sleeping in factories personally, to moving reinforcements from China, to the current layoffs and suspension of recruitment, all of them have had little effect.

After fulfilling his promise to find a successor for Twitter (if he can find one), what new plan will Musk have for his cash cow?

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