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STORY: There are fresh signs of cost-cutting at Tesla.

The carmaker has shut an office in California and laid off about 200 employees.

That’s according to a Reuters source.

Earlier this month, company chief Elon Musk said he had a “super bad feeling” about the U.S. economy.

He said the maker of electric vehicles needed to cut staff numbers by about 10%.

Later he said that would only apply to salaried workers, with hourly paid staff numbers still set to grow.

However, the Reuters source says most of those laid off were hourly workers.

He says that workers had previously been told they would just be moved to a new location.

Instead, they were let go after the office in San Mateo, California, was shut altogether.

Many staffers there worked on helping to develop the Autopilot software that allows Tesla cars to drive themselves.

Tesla did not respond to a request for comment on the news.