Published: Tue, June 12, 2018
Money | By Armando Alvarado

Tesla cutting 9 percent of its workforce to save costs

Tesla cutting 9 percent of its workforce to save costs

Tesla said it plans to cut 9% of its workforce as part of a restructuring meant to reduce costs and boost profitability.

Tesla aims to build 3,500 Model 3 sedans per week by the end of this month.

Last week, Musk overcame an attempt to strip him of his role as chairman of Tesla's board, a plan introduced by a company shareholder who raised doubts about Musk's ability to manage multiple companies simultaneously.

Tesla has laid off about nine percent of its employees, Electrek first reported.

Tesla has not made an annual profit in its 15 years of doing business, and it has posted only two quarterly net profits.

Elon Musk, CEO of SpaceX and Tesla, speaks during the International Space Station Research and Development Conference in Washington, DC in July 2017. For almost all of its history, Tesla has put up losses while investing heavily in technology, manufacturing plants and an extensive car-charging network. "What drives us is our mission to accelerate the world's transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable".

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Tesla has already started to notify employees, a company spokesman said.

Electric vehicle maker Tesla Inc.is laying off about 3,600 white-collar workers as it slashes costs in an effort to become profitable.

The company is making the move now so it never has to do it again, he wrote.

Up almost 7 percent earlier on Tuesday, shares of the company trimmed gains to stand 3.5 percent higher at $344 by early afternoon.

In addition to the restructuring, Tesla won't renew a residential sales agreement with Home Depot Inc. and focus instead on selling solar power in its own stores and online, Musk wrote. The company said the firings involved non-manufacturing positions and were unrelated to production delays involving the Model 3. Tesla is up 11.3% this year.

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