Tesla to Cut 9% of Workers Across Company

14 June, 2018, 11:35 | Author: Eric Barnett
  • Tesla Model 3 Long Range

Yesterday, Elon Musk revealed Tesla is to cut 9% of its workforce, in a move that'll see thousands of people lose their jobs.

According to a report in Arstechnica, Tesla had 37,543 full-time employees at the start of the year.

The company has laid off over 3,000 employees from its salaried population, with no production associates being affected. He said Tesla's rapid growth in recent years contributed to the duplication of roles and creation of jobs that the company could no longer justify.

"Profit is obviously not what motivates us", Musk wrote.

The company would, he continued, "never achieve" its mission to "accelerate the transition to sustainable, clean energy" unless Tesla is able to "eventually demonstrate that we can be sustainably profitable".

Nearly all of the jobs are salaried positions, Musk said.


Panasonic has been producing solar cells and panels at the factory, while Tesla is planning to produce its new solar roofing panels at the South Park Avenue facility.

In April, Tesla ramped up its production efforts to over 2,000 Model 3 sedans per week but this was still short of Musk's goal of 2,500 units a week by the end of the first quarter of 2018. Tesla has been known to spend cash quickly and post consistent losses in the 15 years since its founding.

However, the company's first two major vehicles both sell for around $75,000 or more, whereas the Model 3 starts at $35,000 and had been billed as the first electric auto aimed at the middle market.

Musk has said the company will become profitable in thesecond half of the yearand won't need to raise money. The CEO wrote that those Tesla employees working in Home Depot locations would be offered the chance to work at its own stores. He thanked departing employees for their hard work and said Tesla is providing "significant salary and stock vesting" to those being let go, based on their length of service.

This announcement comes a month after Musk announced a restructuring of the company's organisational charts.

In May, Musk announced a significant reorganization of Tesla in the face of the economic difficulties it was facing and inability to turn a profit.

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