Tesla to Cut Number of Full-Time Workers by 7% - Elon Musk

© AP Photo / Ng Han GuanResidents walk past a Tesla store in Beijing
Residents walk past a Tesla store in Beijing - Sputnik International
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MOSCOW (Sputnik) - US electric car manufacturer Tesla will reduce the number of full-time employees by 7 percent in an effort to produce more lower-priced Model 3 cars, Elon Musk, the company CEO and co-founder, told the staff, according to an email published by Tesla press service on Friday.

"We, unfortunately, have no choice but to reduce full-time employee headcount by approximately 7% (we grew by 30% last year, which is more than we can support) and retain only the most critical temps and contractors. Tesla will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months," Musk's email read.

READ MORE: Tesla Makes Gigafactory Breakthrough in Shanghai, Production to Start in 2019

The company CEO explained that the company's third-quarter profit of 4 percent was partly the result of selling more expensive Model 3 variants in North America, while preliminary fourth-quarter results indicated the profit would be lower than in the previous quarter.

"This quarter, as with Q3, shipment of higher priced Model 3 variants (this time to Europe and Asia) will hopefully allow us, with great difficulty, effort and some luck, to target a tiny profit. However, starting around May, we will need to deliver at least the mid-range Model 3 variant in all markets, as we need to reach more customers who can afford our vehicles. Moreover, we need to continue making progress towards lower-priced variants of Model 3," Musk said.

READ MORE: Elon Musk Offered Green Card After Saying He Wants to Visit China 'More Often'

Earlier in January, Elon Musk said Tesla would no longer take orders for cheaper — 75 kWh versions — of Model S and Model X.

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