06:34 GMT09 March 2021
Listen Live
    Get short URL
    0 30

    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.


    Tesla Slashes US Prices on Vehicles as Demand, Share Price Falter
    Tesla Makes Gigafactory Breakthrough in Shanghai, Production to Start in 2019
    Prof on Robyn Denholm as Tesla Chair: She Brings Lot of Wisdom of the Markets
    Tesla Model S, Tesla, Elon Musk, US
    Community standardsDiscussion