Tesla Calls Off Online Hiring Drives In China After Elon Musk's Job Warning: Report

Tesla Inc TSLA has called off three online recruitment events in China that were scheduled to take place this month, Reuters reported on Friday, citing notifications on social messaging app WeChat.

What Happened: Elon Musk-led Tesla canceled the events saying it was "overstaffed" in some areas.

The three events were scheduled to take place on June 16, 23 and 30 to hire talent for positions in sales, R&D and Tesla's supply chain.

It was not clear if Tesla went ahead with a June 9 event aimed at hiring talent for "smart manufacturing" positions as notifications for the same were not visible, the report said. 

Tesla China continues to allow prospective employees to submit their resumes for over 1,000 roles that are posted on WeChat. Some of these roles are for aerodynamics engineers, supply chain managers, store managers, factory supervisors, and workers.

See Also: Cathie Wood's Ark Invest Scoops Up $2.3M Worth Of Tesla

Why It Matters: The development comes a week after Musk warned of job cuts at the electric car maker as well as a severe output hit at Tesla’s Shanghai plant due to a two-month COVID-19 linked lockdown.

While Shanghai is gradually reopening, Musk last week clarified that Tesla was not freezing hiring and that its “hourly headcount will increase.”

He did not comment specifically on staffing in China, which made more than half of the vehicles for the automaker globally and contributed a quarter of its revenue in 2021.

Musk last month said he believes the U.S. is already under recession and later reportedly told employees he has a "super bad feeling" about the economy.

Price Action: Tesla shares closed 8.9% lower at $719 on Thursday, according to data from Benzinga Pro.