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Leaked email reveals Elon Musk must approve all new Tesla hires

elon musk
Tesla CEO Elon Musk. Mark Brake / Getty Images
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All hires made by Tesla must receive CEO Elon Musk's approval, according to an email sent to Tesla recruiting employees in February.

"All headcount requests from the business must get Elon approval," the email said. "Evidence of this sign off is required."

The email also suggests that Tesla has introduced higher standards for hiring.

"We will be instituting a more rigorous process around requisitions and offers to help manage headcount across the business," the email said, adding that Musk would begin receiving a daily report about recruiting.

Tesla declined to comment.

Read more: Elon Musk said Tesla should not have lowered the price of Autopilot

Tesla has undergone multiple rounds of layoffs in the past year. The automaker followed a 9% workforce reduction in June with a 7% cut in January and what CNBC reported was an 8% layoff in March. (A Tesla representative told Business Insider the figure reported by CNBC was incorrect, but it did not specify the size of the reduction.) Electrek reported on Tuesday that Tesla made cuts to its recruiting division.

Musk suggested in a June email to employees that the automaker would never again have to initiate another round of layoffs.

"I also want to emphasize that we are making this hard decision now so that we never have to do this again," Musk said at the time.

The layoffs have accompanied Tesla's efforts to become consistently profitable while lowering the prices of its vehicles. The automaker recently reported its first consecutive profitable quarters, though Musk has said he does not expect Tesla to be profitable in the first quarter of this year. At the end of February, the automaker announced a long-awaited price cut to $35,000 for its Model 3 sedan as well as price reductions for its Model S sedan and Model X SUV. The price cuts averaged 6% across vehicles.

The price reductions were offset in part when Tesla said on Sunday that it would raise by 3% the prices for all vehicles aside from the $35,000 base version of the Model 3. The price increase accompanied a reversal of the automaker's decision to close or repurpose all of its retail stores in an effort to shift sales online and cut costs.

Tesla said in a February regulatory filing that it had 48,817 full-time employees at the end of 2018. A Tesla representative said the automaker had more than 40,000 full-time employees as of the week of March 4.

Have a Tesla news tip? Contact this reporter at mmatousek@bjinnox.com.

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I'm a senior transportation reporter at Insider covering electric vehicles, automated-driving technology, and ride-hailing. I joined Insider in October 2017 and previously worked as an intern at the St. Louis Post-Dispatch. I graduated from Washington University in St. Louis with degrees in film and media studies and business economics. You can follow me on Twitter @matousekmark and email me at mmatousek@bjinnox.com If you have sensitive information you'd like to share and don't feel comfortable sending it to my work email or via a direct-message on Twitter, you can contact me on the encrypted messaging app Signal at 646-768-4712 or email my encrypted address at mmatousek@protonmail.com. Here's some of my work: Uber insiders are divided over Dara Khosrowshahi's leadership, with some worried the company has become 'boring' and 'confused' about its future Nikola founder Trevor Milton convinced the world he was the next Elon Musk. Insiders say a history of lies brought the billionaire down. 17 hours a day, 7 days a week: Cruise-ship workers describe the grueling conditions they face on the job We talked to 42 insiders about Tesla's factory of the future. They revealed the corners cut to hit ambitious production targets. 70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon Musk Tesla is transforming how cars are sold. But 27 insiders say the company's methods mean slashed pay and living under the constant threat of getting laid off. Uber insiders reveal how DoorDash stole its delivery crown and left Eats in the dust Uber's trying no-meeting Mondays to give employees a break from 'tiring' back-to-back meetings, a leaked email reveals Leaked email reveals a Tesla VP expressed concern about employees coming to work with COVID-19 symptoms Leaked document reveals Nikola flip-flopped on whether it would spend any of its $17 million of customer deposits to fund the Nikola One Insiders reveal Alibaba's Jack Ma sought a partnership with Canoo to build electric delivery vans, but the deal fell flat because the startup couldn't meet his aggressive timeline Leaked email from Elon Musk reveals the Model Y is experiencing production 'challenges' while passing the Model 3 as the top priority at Tesla's US car factory Leaked email and audio reveal Carnival-owned Holland America has struggled to give refunds to some customers Leaked documents reveal the severance packages laid off Carnival UK workers will receive Inside Tesla's overhaul plan for its sales and delivery teams to solve one of its toughest customer challenges