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Tesla to cut workforce by 7 percent, sees small fourth-quarter profit

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Tesla Inc said on Friday it would cut thousands of jobs to rein in costs as it plans to increase production of lower priced versions of its crucial Model 3 sedan, sending its shares down 7 percent.
(Reuters) – Tesla Inc (TSLA. O) said on Friday it would cut thousands of jobs to rein in costs as it plans to increase production of lower priced versions of its crucial Model 3 sedan, sending its shares down 7 percent.
The company, which has struggled to achieve long-term profitability and keep a tight lid on expenses, also said it expects fourth-quarter profit to be lower than the previous quarter.
Chief Executive Officer Elon Musk said the company would need to deliver at least the mid-range Model 3 version in all markets starting around May, as it needs to reach more customers who can afford the vehicles.
In addition, Tesla said it needs to continue making progress toward a lower-priced Model 3.
Musk has been under intense pressure to stabilize production of the Model 3, a car that was unveiled in early 2016 to great fanfare and seen critical to the company’s long-term viability.

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