Elon Musk's 180 on Tesla Job Cuts Did Damage to His Credibility
In November, I wrote that Elon Musk appeared to be entering an Icarus Phase. Tesla and SpaceX were on a roll, Musk’s wealth was reaching new heights — his fortune peaked a day after the column published, at more than $340 billion — and he was flying awfully close to the sun.
Musk has acted even more recklessly since then, venturing far beyond Twitter swipes and potshots at the president. His antics are undermining his credibility.
Set aside the $44 billion Twitter merger agreement from which Musk is trying to renege, and consider the drama at Tesla stoked entirely by its chief executive officer.
Last Thursday evening, Reuters reported that Musk had sent an email to other Tesla executives saying he had a “super bad feeling” about the economy, and wanted to dismiss 10% of the company’s employees.
It was a big scoop, and no other news organization was able to match. Tesla’s overwhelming tendency the last few years has been to not engage with mainstream media. There was no blog post, no regulatory filing, no confirmation, denial, clarification or elaboration on what Reuters reported.
On Friday, Tesla’s stock plunged. Long-time Tesla watchers figured a follow-up email from Musk was surely coming, and we were right. This one went to everybody in the company, with Musk writing that the cuts he’d conjured will only apply to salaried positions.
He wasn’t done. In response to one of his biggest fans declaring Tesla’s headcount will increase over the next 12 months, Musk tweeted Saturday that Tesla’s total number of employees will increase, and that its salaried ranks “should be fairly flat.” Lest he be criticized for this complete 180, that fan and others began attacking Reuters and its initial report. Musk’s mother even got in on the
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