Tesla will cut 3,000 people and focus on Model 3 production

Tesla cuts 7% of its workforce. The company reported a reduction in the number of staff in a letter to all employees, and also posted information on its website. In an e-mail, the company's CEO, Ilon Mask, says that the focus should be on providing "at least an average Model 3 level in all markets." He also warned employees who would not be cut down, that “there are many companies that can offer a better balance between work and personal life, because they are larger and more mature in their industries, and also do not seek competition so eagerly.”

Tesla is betting on Model 3

"Unfortunately, we have no choice but toreduce the number of full-time staff by about 7% (last year we grew by 30%, which we cannot support anymore), and retain only the most important employees and contractors, ”wrote Musk.

"Tesla will be forced to make these cuts,while increasing the speed of production of Model 3 and introducing many improvements in the process in the coming months. The increase in production and improvement of the production process are important to achieve Tesla's economy of the scale required for the production of Model 3 standard range mileage (220 miles), standard interior for 35 thousand dollars, while keeping Tesla afloat. There is no other way. ”

Last October, Musk wrote that Tesla has 45,000 employees - and that means about 3,150 people will be asked to leave.

This step followed a series of reduction measures.costs that have been undertaken by the automaker. Three months ago, Tesla also announced a new, cheaper version of the middle-class car - starting at $ 45,000. After the announcement of news about the reduction of Tesla shares fell by 6%.

However, all this will be more understandable if you have already familiarized yourself with the complete history of the Tesla production hell that the company and Ilon Mask personally encountered.