Tesla Inc TSLA bear Michael Burry said on Tuesday he anticipates a divided labor market developing at a time when companies are struggling with inflation and worker shortages.
What Happened: The “Big Short” fame investor and hedge fund manager shared his views on Twitter in response to a report about Tesla's latest round of layoffs.
“I see a bifurcated labor market developing as unskilled and semi-skilled remain in short supply,” Burry wrote in the post, adding that "redundant" white-collar workers would add to the wage pressure.
I see a bifurcated labor market developing as unskilled and semi-skilled remain in short supply, but white collar workers, having proven their redundancy during COVID, will find gross excess in the labor market, pressuring wages at the end. https://t.co/jak9utVRKM— Cassandra B.C. (@michaeljburry) June 29, 2022
Why It Matters: Tesla has laid off 200 salaried and contract workers from its Autopilot team in California.
The move comes days after Elon Musk said two of Tesla's recently opened factories — Giga Berlin and Giga Texas— are “gigantic money furnaces” and “losing billions of dollars ..and hardly any output.”
Musk this month surprised employees when he confirmed that the EV maker is reducing its salaried workforce by 10% over the next three months.
He had said Tesla's overall immediate headcount will be lower by 3% to 3.5% in the near term but would rise in about a year's time.
Price Action: Tesla closed 5% lower at $697.9 on Tuesday, according to data from Benzinga Pro.
Photo via Pitchayaarch Photography on Shutterstock
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.