Tesla will lay off more than 3,000 employees to make their cars cheaper

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Tesla revealed plans to reduce its full-time workforce by 7% as one of the corporate moves to increase production of Model 3 and reduce vehicle prices, according to an email sent by the company's founder Elon Musk this Friday, published later on his website.

These cuts will affect more than 3,000 employees, according to a figure that Musk announced last year, which indicates that the company has a workforce of 45,000 employees. In June of last year there was a similar round of layoffs.

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Tesla shares fell about 8% in the operations prior to the opening of the market.

Musk said the "small" profits and the pressure to deliver lower-cost Model 3 vehicles "in all markets" later this year mean that "the road ahead is very difficult."

Likewise, he told the workers that the company will only retain the most critical employees and contractors.

In the letter, he stressed that Tesla is "against massive and established competitors" and must work "much more than other manufacturers to survive while building affordable and sustainable products."

"To those who leave, thank you for all you have done to advance our mission, I am deeply grateful for your contributions to Tesla."

The layoffs come after unexpected gains of US $ 312 million for Tesla in the third quarter, boosted by the solid sales that the Model 3 vehicle is having. However, Musk warned that from unaudited results Tesla is projected to produce less profit in the third quarter. fourth trimester.

"This quarter, as in the third quarter, the shipment of Model 3 variants at a higher price (this time to Europe and Asia) will allow us, with great difficulty, effort and some luck, to aim for a small profit "wrote Musk.

The businessman is aware that Tesla's products "are still too expensive for most people" and emphasized that the competition is fierce on the part of more established rivals.

Musk did not specify which personnel are most at risk of being fired, suggesting that the layoffs could spread throughout the company.

Tesla will release its quarterly report, with its fourth quarter earnings, on February 5. Reflecting on 2018, Musk said it was the most challenging but successful year in Tesla's 16-year history.

"Looking forward to our mission to accelerate the advent of sustainable transport and energy, which is important for all life on Earth, we face an extremely difficult challenge: making our cars, batteries and solar products competitive in fuel costs. fossils, "he added.