Tesla layoffs: Elon Musk says job cuts required to fuel profits

Tesla lays off roughly nine percent of workforce		
		
	Megan Rose Dickey

       @	   
   	7 hours

Tesla lays off roughly nine percent of workforce Megan Rose Dickey @ 7 hours

Musk said most Tesla employees who had worked at the company's Home Depot displays will be allowed to work at Tesla's stores.

Tesla is slashing thousands of jobs, its chief executive Elon Musk announced Tuesday, as the electronic vehicle company attempts to hit production targets and reach profitability.

Musk tweeted screen shots of his company-wide email announcement stating the reorganization that is underway is hard but necessary.

In his email, Musk said the layoffs primarily affected salaried positions and will not affect Model 3 production. The company has yet to make a profit since it was founded by the entrepreneur in 2003, and Musk said following a "comprehensible organizational restructuring".

As CEO Elon Musk notes in a letter to employees, the company has never made an annual profit. "What drives us is our mission to accelerate the world's transition to clean, sustainable energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable". For almost all of its history, Tesla has put up losses while investing heavily in technology, manufacturing plants and an extensive car-charging network.

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The San Jose Mercury News, which first reported the firings, said the departures included "engineers, managers and factory workers".

Excluding items, Tesla had a loss of $3.35 (£2.45) per share.

As of the time of this reporting, Tesla stock is up over 4%. He even acknowledged the company has never turned a profit in its nearly 15 years of existence. The company said the firings involved non-manufacturing positions and were unrelated to production delays involving the Model 3.

Layoffs reportedly began on Monday and are expected to continue throughout the week.

"We are a small company in one of the toughest and most competitive industries on Earth", Musk wrote. It will instead "focus our efforts on selling solar power in Tesla stores and online", he said. The CEO wrote that those Tesla employees working in Home Depot locations would be offered the chance to work at its own stores.

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