The company added that its rapid growth over the past several years has resulted in some duplication of roles and job functions.
Last month Mr Musk said the company was planning a wide-ranging reorganisation that would flatten its management structure.
Afterward an emotional Musk appeared to signal brighter days ahead for the Tesla when he predicted the company would begin pushing out 5,000 Model 3s per week by the end of June.
Tesla confirmed that only salaried employees will be laid off and no production associate will be let go as Tesla is still focused on increasing Model 3 production. Employees told the paper that they received "little or no warnings" before the firings, which reportedly targeted 400 to 700 employees, leading to "lowered morale through many departments".
Tesla said it started this year with about 37,000 workers, and increased that number by about 15 percent, which would make for a workforce of about 42,550.
"As part of this effort, and the need to reduce costs and become profitable, we have made the hard decision to let go of approximately 9 percent of our colleagues across the company", Musk wrote". 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's workforce has grown at an incredible pace since the acquisition of SolarCity, which pushed Tesla's total headcount to over 30,000 employees.
Musk said that the layoffs do not affect production staff and stressed that this wouldn't hurt the company's efforts to hit big targets for production of the Model 3 sedan.
"The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations", it said.
The company is making the move now so it never has to do it again, he wrote. So a nine-percent cut means letting more than 3,000 workers go. We must continue to drive that forward for the good of the world.
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