Expensive metals cause stagnation in the electric car sector and Elon Musk decides to paralyze Tesla job openings; cost cutting can reach 10%

It is not from yesterday that the electric car sector has been experiencing instabilities regarding the price of metals, which have been in short supply since the beginning of the pandemic. Mining is not keeping up with technological developments at the same pace. 

In an email sent to his collaborators, billionaire Elon Musk, owner from Tesla, told the directors that they should pause hires by at least 10%. According to him, he has a negative feeling about the electric car sector. Lithium, which is essential to manufacture batteries, is suffering a sharp rise because, during the year 2021, there was a production of 11% less than what was necessary to supply the demand of the global market. 

The news was shared by the Reuters portal, which claimed to have access to the billionaire's text. The news was announced this Friday, June 03rd, and may show a possible recession in the economic sector and in electric cars, especially in terms of batteries. It is known, so far, that more than 100 people were employed by the Tesla company by the end of last year. The company did not comment, however, whether it should fire part of its current employees or whether they will just pause hiring and job vacancies. 

Aesla shares plunged at least 3% and Elon Musk may have compromised income 

Tesla shares, which are being listed in Frankfurt, have already dropped at least 3% during the premarket. Nasdaq futures, even before the opening of trading, are already negative by 0,6%. The news, according to the Reuters portal, may negatively affect the sector during this weekend. 

Tesla has been showing interest in continuing with its productions in the city of Shanghai. However, they had to stop after some impositions from China because of the Covid-19 pandemic.  

Carsten Brzeski, global head of macroeconomic research at Dutch bank ING, said in an interview that the negative sentiment of billionaire Elon Musk, who became even more famous for his investments in cryptocurrencies, is also felt by banks and companies around the world. because of the high inflation left by the health crisis. 

Inflation has been worrying investors – and we are not just talking about Brazil! 

After Elon Musk's email was sent, there was a hypothesis that the crisis could cause the CEO of JPMorgan Chase & Co, Jamie Dimon, and the president of Goldman Sachs, John Waldron, to be fired from Tesla, jeopardizing the company's entire reputation for developing electric cars. 

The inflation impregnated in the United States has been present since when Joe Biden took office as president. It has been raising the cost of living for consumers. Musk, however, has not yet stated what would have been the reason for his negative feeling, despite the media believing it was prices to keep companies.  

Because of the difficulty Musk is having in continuing to manufacture electric cars in countries with cheaper labor and in large numbers, analysts predict difficulties in remaining only in the market. North America. 

 Wedbush Securities, Daniel Ives, stated that Musk would have difficulties due to the lack of cheap workers and that this would be causing a slow delivery of cars in view of the availability that its competitors are having on a multinational scale. 

Follow Click Petróleo e Gás to stay up to date on the billionaire's statements during this Friday, June 03rd, in relation to the corporate email.