Tesla will cut staff by 7%.
The electric carmaker's workforce entrenchment is apparently a way to deal with rising competition. Musk wrote in the letter that Tesla is "up against massive, entrenched competitors" and must work "much harder than other manufacturers to survive while building affordable, sustainable products." Around 3,150 people are estimated to lose jobs. Tesla cited its plan of producing cheaper versions of Model 3 as a reason behind the job cuts.
Tesla was making losses during its ramp up of Model 3 production. In June 2018, the carmaker cut its workforce by 9%. In the third quarter, it delivered a profit of $312 million.