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Tesla to cut over thousands of jobs while it ramps up production of Model 3

The company said it would reduce full-time employee headcount by about 7 percent and retain only the most critical temps and contractors

Reuters 

Tesla Model 3
Tesla Model 3

Inc said on Friday it was cutting several thousands of jobs, as the maker looks to trim costs and be consistently profitable while it ramps up the production of its crucial

shares fell 4.1 percent to $333 in premarket trading

"will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months," said in an email to employees that was published on the company's blog.

"There isn't any other way," he said.

The company said it would reduce full-time employee headcount by about 7 percent and retain only the most critical temps and contractors.

Earlier this month, Tesla cut U.S. prices for all its vehicles to offset lower green tax credits, and fell short on quarterly deliveries of its mass-market

Musk said the company is on target to report a GAAP profit in its fourth quarter, but less than the previous three-month period.

"This quarter, as with Q3, shipment of higher priced Model 3 variants (this time to and Asia) will hopefully allow us, with great difficulty, effort and some luck, to target a tiny profit," Musk said.

 

 

First Published: Fri, January 18 2019. 16:06 IST