Tesla Inc. said Friday it would cut 7 percent of its workforce — or some 3,400 jobs — to rein in costs as it…
Tesla Inc. said Friday it would cut 7 percent of its workforce — or some 3,400 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 in premarket trading.
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 as critical to the company’s long-term viability.
