Some major companies say recent layoffs are being driven by advances in AI.
However, Elon Musk says Tesla plans to move in the opposite direction and increase hiring as robotics improve productivity.
Speaking at the Abundance Summit, Musk said Tesla is not planning any workforce reductions. Instead, the company expects to grow its headcount as automation expands.
“We’re not planning any layoffs or reductions in personnel,” Musk said. “In fact, we will increase our headcount. But the output per human at Tesla is going to get nutty high.”
Across the tech sector, many firms are cutting jobs while investing more heavily in AI. Atlassian recently announced plans to cut 10% of its workforce, while Block, Inc., the fintech company co-founded by Jack Dorsey, laid off about 4,000 employees, citing AI as a major factor.
Musk has repeatedly said that advanced robotics could eventually replace many human jobs. Tesla is currently developing Optimus, a humanoid robot designed to perform physical tasks.
He has also argued that widespread automation could require new economic systems, including universal basic income, as robots begin producing most goods and services.
At the same time, automakers are increasingly investing in robotics to handle repetitive manufacturing work. Executives at robotics companies say many businesses are turning to machines to fill labor gaps, particularly for physically demanding tasks.
A Tesla spokesperson did not respond to requests for comment.