Tesla to cut 10 per cent of salaried staff, increasing hourly workers

Tesla founder and CEO Elon Musk has confirmed the electric vehicle manufacturer is making staff cuts, with fears of a recession in the United States looming.

As reported by Reuters, the outspoken CEO was able to confirm roughly 10 per cent of Tesla's salaried workforce will be axed over the next three months, although more positions will be made for those willing to drop down to hourly work.

With an expected headcount reduction of 3.5 per cent across the company, Musk believes the changes aren't "super material", but they are necessary given the US is expected to enter a recession in the future, with Musk saying it is "not a certainty, but it appears more likely than not".

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The announcement comes less than a month after Musk urged workers to return to their offices, saying in an email to his workers: "Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla.”

While Tesla's Model 3 moved to ninth spot on the top 10 best-selling vehicles of 2021 list worldwide, numerous shutdowns at the manufacturer's Shanghai facility massively delayed the Australian debut of its Model Y SUV.

Having put the SUV on sale earlier this month, Tesla increased the price of both its Model 3 and Model Y last week, driving the entry-level Model 3 up to $65,500 from $63,900 while the Model Y RWD jumped up from $68,900 to $72,300.

In addition to the price changes across its model range, the Tesla ‘Enhanced Autopilot’ (EAP) system has been added as an option in Australia, with EAP adding Navigate on Autopilot, Auto Lane Change, Autopark and Smart Summon for a $5100 premium.