Beginning of mass exodus? Elon Musk may trigger Tesla’s ‘great resignation’

Experts have warned that Tesla chief Elon Musk’s warning to fire anyone who doesn’t work 40 hours a week in the office could spark a mass exodus.

They believe that after Musk’s ultimatum, many of the 100,000 people employed by the electric car maker may already be considering their options.

According to Nicholas Bloom, professor of economics at Stanford University, “Tesla is launching its own big local resignation”.

Bloom predicted that while 10% of Tesla employees would quit, about 30% would seek other employment due to a lack of work-life balance.

A large majority of tech workers have become accustomed to working from home or hybrid policies in the wake of the COVID-19 pandemic and don’t want to fully return to the office.

Several companies have already started poaching Tesla employees, with Atlassian software maker co-founder Scott Farquhar tweeting if any of them are interested in joining his company.

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Some Tesla employees have already complained of being pressured to work in the office during the pandemic and of being infected with the coronavirus on several occasions.

According to former and current employees, stock options make up a larger portion of executive compensation at Tesla than at its peers.

Musk’s public alignment with the Republican Party and the sharp decline in Tesla’s share price this year due to Musk’s costly Twitter lawsuit are additional factors that could contribute to the exodus.

Michael Solomon, founder of compensation negotiation advisory service 10x Ascend, told Reuters news agency that “if this continues they will absolutely have a retention problem”.

(With agency contributions)

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Post expires at 3:42am on Friday June 17th, 2022