Tesla cuts 9 percent of workforce in search for profit

Tesla cuts 9 percent of workforce in search for profit

Shares of Tesla sank about three percentage points from their intra-day high on Tuesday after Electrek reported the company was planning to lay off over 3,000 employees - or roughly 9% of its workforce.

He thanked departing employees for their hard work and said Tesla is providing "significant salary and stock vesting" to those being let go, based on their length of service.

At the company's annual shareholder meeting earlier this month, Musk said he expected the Palo Alto, California, company to post a quarterly profit during the July-September period.

The layoffs are "almost entirely" in salaried positions and won't impact Tesla's efforts to increase Model 3 production, Musk said. So a nine-percent cut means letting more than 3,000 workers go.

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.

"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 can eventually demonstrate that we can be sustainably profitable".

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John McCain who responded with a very different message for US allies: "Americans stand with you, even if our president doesn't". May also rejected President Trump's suggestion that Russian Federation should be brought back into the G7.

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

Shares of electric automaker Tesla rose during Tuesday's trading session after one Wall Street firm raised its Model 3 production estimates by 50%.

The delays and higher costs have put Tesla into unsafe territory where it is rapidly running out of cash and investors have become nervous about lending the company more money.

Tesla also said it was not renewing its residential sales agreement with retailer Home Depot in order to focus on selling solar power in Tesla stores and online.

Tesla has been burning cash nearly continuously since it was founded 15 years ago.

Tesla has promised to hit a 5,000-cars-per-week production target for the Model 3 by the end of this month. The company is now producing just under 3,000 per week, Bloomberg estimates.

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