In a surprising move, Tesla CEO Elon Musk has reportedly informed Tesla employees that he intends to personally approve every new hire at the company. This announcement comes as Tesla continues to hire approximately 30,000 individuals annually, making Musk’s decision quite ambitious.
An email from Musk to Tesla employees was obtained by Electrek, revealing his intention to gain a deeper understanding of the hiring process within the company. To achieve this, he expressed the need to review and approve all new hires, including contractors. In fact, Musk emphasized that no one, not even contractors, will be able to join Tesla without receiving his personal email approval.
Given Tesla’s substantial rate of recruitment, averaging around 30,000 new employees per year over the past three years, this decision is likely to result in a temporary hiring freeze. It seems implausible for Musk to personally approve new hires at a rate anywhere close to the company’s current recruitment pace.
The duration for which Musk plans to enforce this requirement of personal email approval remains unclear at this time.
It is worth noting that Tesla experienced a brief hiring freeze and subsequent round of layoffs last year. However, the company quickly resumed hiring and concluded the year with approximately 127,000 employees, representing a notable 28% increase compared to the previous year.
Tesla’s recent focus on cost reduction is likely a contributing factor to Musk’s decision. The company has implemented significant price reductions across its entire vehicle lineup in 2023 and is seeking ways to offset those reductions. By personally approving new hires, Musk may aim to ensure that the company’s hiring aligns with its cost-saving objectives.
As the situation unfolds, it will be interesting to observe how Tesla manages to navigate this ambitious approach to hiring and how it will impact the company’s future growth and workforce expansion.
