According to reports, Tesla is preparing for additional layoffs and a hiring freeze. An Electrek source claims that the corporation has temporarily stopped hiring and that teams would have to make some layoffs in the first quarter of 2023.

We don’t yet know how widespread the layoffs and hiring freeze will be. Tesla is attempting to add more employees to its factories, though. According to rumours, the business will soon reveal its plans to construct a second Gigafactory in Mexico. There is no one in Tesla’s communications department who can comment. Elon Musk, the CEO of the manufacturer, predicted in June that over the coming few months, Tesla will have a net staff drop of 3.5 percent. Hundreds of members of the Autopilot team were reportedly among those laid off during a round of layoffs that occurred around that time.

The stock price of Tesla has plummeted by over 65 percent this year and 22 percent just this month, despite the fact that the business produced a record number of its electric vehicles in the most recent quarter. Musk has attributed the falling stock to rate increases by the Federal Reserve. Over the past few months, Tesla has experienced a slowdown in the economy similar to other companies.

Some Tesla stockholders have sold off their holdings out of concern that Musk may become distracted by Twitter and divert his focus away from the firm. He said on Tuesday night that once he can find a successor, he will stand down as CEO of Twitter. There are rumors that Tesla vehicle demand has decreased as a result of some consumers cancelling preorders and leases in the wake of Musk’s disastrous Twitter reign. Tesla has even gone as far as to provide discounts on its EVs in some areas, as noted by Electrek.