Tesla cuts 10% jobs as Elon woes on economy deepens.

Elon has expressed his discontent at work from home culture, only last week making an email to his non-production line workers public that he expects them to work 40 hours a week at the office, or take a hike.

Arguably, many of the top tech companies have made adaptions to their workflow since the pandemic and many have found some success in doing so. In fact, it only accelerated what many would have considered an inevitable shift to a more healthy work-life balance.

Forcing people to travel to the office when the same work could have been done at home is of course an anti-environmental policy, one which even the likes of Musk would scorn at if not for the fact that his cult of personality has taken tremendous set-backs as of late, and his cult legion following may soon succumb to the wider macro backdrop of tightening liquidity, and forced selling.

A lower stock price for Tesla essentially reduces Tesla (and by extension Elon Musk's) ability to tap into vast liquidity granted to them by investors, to increase their buffer, or extend their runway. Though they are some ways from being in any existential danger, it is a long time coming for Tesla to come back to earth on the lofty forward financed bubble price of Tesla shares which have thus been unreasonably supported by actual earnings.

Tesla still makes good cars

Competition is already tapping into the EV industry with traditional auto companies rolling out massive investments to electrify their fleet by decade end. Tesla remains the leader after having a head start, they also have the largest fleet of existing EVs on the road. However, their moat is being pummelled from all sides, and it is only a matter of time before people realise that the Tesla share price currently suggesting that they have complete dominance in the EV market for the years to come, is not going to play out in reality.

Good cars they are, but up until now, they were largely the only viable EV.

Job cuts have been announced across many large companies, and more are expected to come. It is something that Elon has welcomed himself - a way for the market to self correct from mal-investment and complacency - the survivors of such a correction will only strengthen future productivity.

The roadster which was announced 4 years ago, is still yet to start mass production. But for about $150k you can still get the fastest accelerating mass produced street legal car in the world in the Model S Plaid, and I suppose, that will do for now.

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