Elon Musk has announced a reduction in the workforce of Tesla by 7%, or 3,000 jobs. The reason is that the company has not reached the target profit in the 4th quarter of 2018 which the company’s shares fell 7.2%.
In his letter to employees, Musk said that the company is under the pressure of circumstances that require you to limit costs to continue its work, especially in the issue of available versions of Model 3. The loss of profit at the end of the year, lower price range and thus the margin of profitability, as well as the fact that the company would lose the Federal tax credit at the end of the year, forcing the government to go to extreme measures.
Last year, Tesla expanded its staff by 30%, but in light of recent news it is too big a team for the current financial situation of the company and to keep the firm afloat, cuts are inevitable.