Tesla to slash thousands of jobs in profitability drive

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As such, Musk states that the layoff won't impact the company's Model 3 production goals.

Electric vehicle maker Tesla is cutting several thousand jobs across the company as it seeks to reduce costs and become profitable without endangering the critical production ramp-up for its Model 3 sedan.

The email from Musk said.

Musk said that the layoffs do not affect production staff and stressed that this wouldn't hurt the company's efforts to hit big targets for production of the Model 3 sedan.

In an email that he released on Twitter, Musk that the job cuts were part of a "comprehensive organizational restructuring" driven by "the need to reduce costs and become profitable".

"Given that Tesla has never made an annual profit in nearly 15 years...profit is obviously not what motivates us", Musk said in the letter. Year-to-date, Tesla's headcount is up roughly 15%. Tesla now employs approximately 46,000 workers, with roughly 8,000 positions added since the start of the year, according to CNBC.

Musk says Tesla is making the move now so it never has to do it again.

"I would like to thank everyone who is departing Tesla for their hard work over the years". The firm raised its expectations based on conversations with sales centers, finding that Model 3 volumes are showing "meaningful ramp".

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Tesla shares, which are up almost 10 percent on the year, rose on news of the job cuts.

He noted that Tesla has never made an annual profit - a point that's often made by critics.

The company added that its rapid growth over the past several years has resulted in some duplication of roles and job functions.

Tesla will not renew its agreement with Home Depot to sell solar panels and battery packs at the retailer's stores, Tesla CEO Elon Musk said on Tuesday.

Consumer Edge Research Analyst James Albertine wrote in a note to investors that he views the moves "as a positive in helping Tesla track toward profitability later this year".

"Profit is obviously not what motivates us", Musk wrote.

What do you think the future holds for Tesla?

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