January 1, Elon Musk Has ‘Super Bad Feeling’ About US Economy

Tesla CEO Elon Musk told executives he had a “super bad feeling” about the U.S. economy and that the company needed to cut 10 percent of its staff, Reuters reported.

Musk relayed his concerns in an email on Thursday to Tesla executives titled “pause all hiring worldwide.” After Reuters published the report, the company’s shares fell nine percent.

On Friday, Musk sent another email to employees announcing that Tesla would be cutting its salaried staff by 10% because it had become “overstaffed in many areas.”

According to the outlet, Musk ordering a hiring freeze and staff cuts marks the most direct and high-profile message of warning about an impending recession.

“Elon Musk has a uniquely informed insight into the global economy,” said Adam Jonas, an analyst at Morgan Stanley. “We believe that a message from him would carry high credibility.”