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Tesla laying off 9 percent of workforce

Tesla laying off 9 percent of workforce

Tesla said the more than 3,000 cuts would affect mostly salaried employees, excluding workers producing its cars.

On Tuesday, Musk tweeted that the company will cut 9 percent of its workforce as part of the restructuring and to "become profitable".

"These cuts were nearly entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months", Musk tweeted.

Musk's note also said that Tesla will end distribution of its solar power and home battery equipment at Home Depot and focus on direct sales instead.

Tesla has laid off about nine percent of its employees, Electrek first reported.

Elon Musk, CEO of SpaceX and Tesla, speaks during the International Space Station Research and Development Conference in Washington, DC in July 2017.

Seeing Tesla Improving Production Rate: Keybank

Musk in the email thanked the employees leaving the company and said the individuals will receive compensation.

"What drives us is our mission to accelerate the world's transition to sustainable, clean energy, but we will never achieve that mission unless we can eventually demonstrate that we can be sustainably profitable". The firm has a sector weight rating and a $300 "fair value" price target on Tesla shares, which were up about 4% in pre-market trade Tuesday.

Tesla started 2018 with about about 37,000 employees globally and has hired thousands of employees since then.

The company is making the move now so it never has to do it again, he wrote.

The delays and higher costs have put Tesla into unsafe territory where it is rapidly running out of cash and investors have become nervous about lending the company more money. The company would seek to reemploy Tesla employees at Home Depot stores at its own locations.

Musk said the cutbacks would not affect the company's ability to reach Model 3 production targets in the coming months.

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