Tesla Inc said on Friday it was cutting several thousand jobs as the electric car maker seeks to cut costs and consistently be profitable while increasing production of its crucial Model 3 sedan.
Shares of Tesla fell 4.1 percent to $ 333 in pre-market trading.
“Tesla will have to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months,” said the CEO. Elon musk said in an email to employees that was posted to the company Blog.
“There is no other way,” he said.
The company said it would reduce the number of full-time employees by about 7 percent and retain only the most critical contractors and employees.
Earlier this month, Tesla cut US prices for all of its vehicles to offset lower tax credits and fell short on quarterly deliveries of its Model 3 on the market.
Musk said the company aims to report a GAAP profit in its fourth quarter, but less than the prior three-month period.
“We expect that this quarter, as in the third quarter, shipping higher priced Model 3 variants (this time to Europe and Asia) will allow us, with great difficulty, effort and some luck, to make a small profit.” Musk said.
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