Elon Musk says Tesla expects to increase its human workforce as AI and robotics boost productivity

Elon Musk said he expects to increase Tesla's employee headcount and productivity per worker. Anadolu/Anadolu via Getty Images 2026-03-13T04:01:01.234Z Share Copy link Email Facebook WhatsApp X LinkedIn Bluesky Threads lighning bolt icon An icon in the shape of a lightning bolt.

Impact Link Save Saved Read in app Loading audio narration... This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. Some large companies are attributing recent mass layoffs to advancements in AI. Tesla CEO Elon Musk said he expects to hire more people as robotics boost productivty. The "output" per Tesla worker will get "nutty high," Musk said. As companies conduct AI-induced layoffs, Elon Musk expects to do the exact opposite at Tesla. The CEO said during the Abundance Summit on Wednesday that workforce reductions aren't in the cards for Tesla and that he expects to raise headcount, after entrepreneur Peter Diamandis asked when he expects robots to build robots."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." Companies across industries are shedding employees, from administrative workers to engineers, and attributing the layoffs to advancements in AI.Atlassian, an enterprise software company, announced Wednesday that it would cut 10% of its workforce as it invests in AI to reshape its workforce. Block, a financial technology company co-founded by Jack Dorsey, laid off 40% of its workforce, or 4,000 employees, this month, citing AI as the main driver.Musk himself has frequently said that advancements in robotics will eliminate the need for humans to have jobs. One of Tesla's main bets is Optimus, a humanoid robot. The CEO has advocated for a universal basic income because he predicts robots will fully take over the production of goods and services."We'll basically just issue money to people," Musk said at the summit, "because the output of goods and services will so far exceed the money supply that we'll effectively have deflation." Automakers, including Tesla, are investing in humanoids and other robotics to fill in for manufacturing jobs.Agility Robotics' chief business officer, Daniel Diez, previously told Business Insider that companies are looking to robotics to fill labor gaps, particularly for jobs with highly repetitive physical tasks. A Tesla spokesperson did not respond to a request for comment.