Rightfully, Musk is biting the bullet. Tesla is a private company. Jobs at Tesla are not government jobs.
That's actually a bad strategy. The people who can easily get a job somewhere else will tend to leave and those who can't will stay. So you end up with a less talented labor force. Recessions / weak economies are an opportunity to get rid of your least productive workers.
The correct terminology is it is a private company which is publicly traded or when comparing to a government entitywhich is government owned it is correct to say it is private co. Admitedly the definition has transitioned over time. Therefore you are more right.
Agree, companies build up inevitable dead weight during the booms time. And it is hard to fire those people because replacements are hard to find when the job market favours the workers. As a software engineer i have worked with other engineers who are not very productive, i can see their commit logs, they are not committing much code at all and adding almost zero value. Sometimes even adding negative overall value. But still getting paid $150K+ each. I have no idea why they haven't been fired. A lot of it is politics. Managers often don't like to fire people unless forced to do so by their own managers. And as long as it is only a couple of people on their team they ignore it. It annoys me, because i often got dumped with the work that the slackers on my team should have done a month ago.
Not sure it was just Musk's feeling. Car data sales for the month of May are looking very bad: Tesla probably still has a back log of car orders. But i guess new orders for tesla cars in May were down. https://www.zerohedge.com/markets/a...data-shows-dramatic-slowdown-us-new-car-sales
We knew from the beginning he would offshore production to china. He was just waiting for the first down turn signs of excuse. Cali production and jobs never had a long term plan. He still producing and selling huge numbers of cars. He just wants to completely offshore to china. https://www.businessofbusiness.com/...company-illustrated-in-2019-job-listing-data/ https://insideevs.com/news/559754/tesla-hiring-new-model-line/ Remember..all of musk business is based on US subsidies and tax incentives. Space, Batteries, Solar, EV.. if he only uses downturns as an excuse to slowly offshore..he continues to receive the tax incentives and huge subsides. Much of SpaceX production line and refurbishing will eventually be done in mexico as well. For tesla, Layoffs dont seem to be related to slowing sales or production at all...he will buy on this dip. However, the downturn will probably end GM and Chrysler and make ford a very small company. Old school car sales probably are slowing greatly. And US dinosaur auto companies cant survive without 0% loans and hate soaring labor costs and unions. GM seems more of a short here than tesla https://labortribune.com/tesla-found-guilty-of-union-busting/ Speaking of Unions..Amazon and Starbux looking like shorts. Unions dont care about slow downs and recession. Once they have a foothold..its over. Amazon labor costs must be outrageous these days. And a $12 cup of Starbucks coffee sourced from a newly socialist led colombia or brazil coffee cartel...coffee prices soon to soar. Im trying to find small cap robotics and automation technology companies that serve warehouse operation to invest in. Infact..all robotics and automation technology probably looks good here.