Elon Musk instructed Tesla workers that he desires to approve each new rent on the firm personally. It’s a stunning transfer for an organization hiring about 30,000 folks per 12 months.

Electrek obtained an electronic mail that the CEO wrote to Tesla workers right now.

Within the electronic mail, Musk stated that he desires to get a greater understanding of hiring at Tesla; so as to take action, he appears to point that he must approve all new hires – even contractors:

Nobody can be a part of Tesla, whilst a contractor, till you obtain my electronic mail approval.

That is probably going to end in a light hiring freeze, contemplating Tesla has been hiring about 30,000 new workers per 12 months on common over the past three years. It’s laborious to think about that Musk can approve new hires at a price wherever close to that.

It’s not clear how lengthy the CEO plans to require his private electronic mail approval on new hires.

Tesla applied a quick hiring freeze final summer time and a spherical of layoffs, however the firm rapidly resumed and ended final 12 months with about 127,000 workers – up 28% 12 months over 12 months.

The corporate is attempting to chop prices with a purpose to compensate for its vital value reductions throughout its whole lineup in 2023.

The automaker nonetheless enjoys industry-leading margins on electrical autos, however this would possibly change following additional value drops in April.

Electrek’s Take

It may actually be simply Elon attempting to grasp Tesla’s hiring course of higher, however successfully, this might end in a serious slowdown in hiring.

He has used the identical technique previously, like in the course of the main cost-cutting effort in 2019 when he stated that he and CFO Zach Kirkhorn must log off on each web page of spending for all the firm.

Employees are far more cautious about issues after they know the CEO will personally be looking. This appears to be like like an analogous method with this electronic mail approval for hiring.