CEO Elon Musk sent an email to top executives Thursday with the directives because he has a “super bad feeling” about the economy, Reuters reported.
Tesla celebrated the grand opening of its headquarters in East Travis County in April.
“California is great and we'll continue to expand in California but we ran out of room and so we need a place where we can be really big, and there's no place like Texas," Musk told the crowd back in April.
Daily drone videos show Giga Texas isn't quite fully operational just yet. Because of that, local industry leaders don't believe any possibly hiring freeze or layoffs will hit Austin.
"We're currently, in manufacturing, about 65,000 employees," Ed Latson, executive director for Austin Regional Manufacturers Association, said. "Over the next two years, I expect that to be really around 85,000. And a large part of that is Tesla, you know, growth in their factory and what it's going to take for them to make their cars."
Tesla’s move to Texas was announced in July 2020 by Gov. Greg Abbott. At the time, Abbott said in a press release that the new Gigafactory was expected to bring at least 5,000 new jobs.
According to Reuters, Tesla employs nearly 100,000 people worldwide.
Tesla’s stock dropped more than 5% in pre-market trading Friday following the temporary hiring freeze and job-cut news.
The CEO recently told SpaceX and Tesla employees they needed to be in the office for at least 40 hours each week – or find a new job.
Austin Community College, which has a partnership with the electric car maker, shared a statement with KVUE following the announcement.
"Austin Community College's partnership with Tesla continues to grow. Neither the Tesla START Manufacturing program nor any other Tesla-affiliated program at the college is impacted by recent announcements and no impacts are expected. A new, 100-student cohort for the Manufacturing Development Program remains scheduled to begin later this summer and another START cohort will begin at the start of the fall semester."
Travis County school district Del Valle ISD also has a partnership with Tesla, and it confirmed students won't be affected by the layoffs.
"Del Valle ISD and Tesla jointly hosted a signing day for 41 of our students on May 21. Those students are joining the Manufacturing Development Program. We continue to offer and expand unique and innovative programs that prepare our students for careers in a variety of industries and degrees at colleges and universities."
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