The electric car company is laying off workers in its autopilot division, according to people familiar with the matter.
Some of the office's 350 workers were relocated to another location after the company laid off 200 workers.
In early June, Musk said he wanted to cut jobs and he had a bad feeling about the economy, according to the report.
He said in a video last week that he wanted to cut up to 3% of the company's workforce, specifically those who have salaries. At the end of last year, the company had 100,000 workers.
The WARN Act requires large employers to give 60 day's notice if they plan to lay off a lot of people. Musk said the lawsuit was trivial.
The company did not respond to the question about the layoffs.