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
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