Tesla cuts 9 percent of workforce in bid to post profit

Tesla to lay off 3,000 employees, CEO Elon Musk says it's difficult to say goodbye

Elon Musk took to micro-blogging site Twitter to confirm that Tesla will soon lay off around 3000 employees.

Business magnate, investor, engineer, eccentric billionaire, Tesla (TSLA) co-founder and CEO, Elon Musk, purchased upwards of 70,000 shares of the company, simultaneous with his announcement of layoffs of nearly 10% of employees.

"The company will pull out all the stops, it will do a lot of one-time items, we believe, to show a GAAP profit in the third quarter". This news was qualified in a statement made by Musk, who clarified that the cuts would be targeting salaried employees, and not factory jobs, ensuring that the company's production of the Model 3 would go unaffected.

Musk said that the job cuts are part of Tesla's restructuring process. He has promised to make 5,000 Model 3 cars a week by the end of June, according to the Wall Street Journal.

What Musk is hoping to achieve with the $25 million gambit is yet unknown.

Musk wrote in the email that the company will never achieve its mission to help move the world to cleaner energy "unless we eventually demonstrate that we can be sustainably profitable".

In a move that wiped £1.5 billion ($2 billion) from the firm's value, CEO Elon Musk said questions about his firm's record net loss were "So dry".

Musk also announced that the company's solar panel unit has made a decision to end its agreement to sell via Home Depot stores so it can focus on sales in Tesla's company stores and online. The company will seek to re-employ most Tesla employees at Home Depot stores at its own locations.

Tesla has been trying to hit a 5000 per week production target for its Model 3 sedan after facing initial production hiccups.

Efraim Levy, analyst at CFRA Research says that profitability is just around the corner but it may not last long.

Related:

Comments

Latest news

E3 2018: Rick & Morty Co-creator Announces Trover Saves the Universe
While details surrounding gameplay are sparse, it will be out early 2019 . The game's official website has a short description: "Wonderful.

Idaho child diagnosed with plague
That would only happen through close proximity to someone suffering from the variation of the disease known as pneumonic plague. Health officials stress that person-to-person transmission is extremely rare and this case was not a risk to others.

Trump declares North Korea 'no longer a nuclear threat'
He told reporters that if the USA concludes they no longer are, the freeze "will no longer be in effect". Pompeo said Trump would resume the military drills if North Korea stops negotiating in good faith.

Edmonton likely to host matches, as North America wins bid
Launched on June 1, 2016, Daily Hive is the evolution of Vancity Buzz and is now in Vancouver, Calgary, Toronto, and Montreal. The joint bid defeated Morocco's application with 134 of the 200 votes cast at the FIFA Congress in Moscow on Wednesday.

Americans' Obsession With Sugar Starts in Infancy
Past studies have pointed towards breakfast cereals, cakes and desserts, sugary drinks, yogurt and candy as the biggest culprits. Parents of more than 80% of kids aged six to 23 months reported their children consumed at least some added sugar on a given day.

Other news