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US electric car maker Tesla is closing one of its California offices, laying off about 200 employees, The Wall Street Journal reported, citing sources.

The company is closing its San Mateo office to cut costs, and more than half of its staff have received notices of resignation to cut costs, she said. The rest of the staff will be distributed among other offices of the company. The publication notes that most of the employees who were laid off were engaged in improving the Tesla autopilot.

Earlier, Tesla owner Elon Musk reported a very bad feeling about the American economy and warned of the intention to cut about 10% of employees and suspend hiring around the world. Speaking at the technology All-in Summit conference in Miami in mid-May, Musk said that the United States economy is in a recession and will come out of it no earlier than a year.

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