09/21/2019

Tesla to Slash More Jobs in Effort to Reduce Model 3 Price

Tesla Inc.plans to eliminate 7% of its full-time workforce, the auto maker’s second round of job cuts in a year as it tries to maintain profitability while lowering the price of its Model 3 sedan.

The maker of electric vehicles has been jacking up production of the Model 3 while chasing its long-held dream of selling it at $35,000 to make it a mainstream sedan. Chief Executive Elon Musk, in a memo early Friday reviewed by The Wall Street Journal, told employees preliminary results show Tesla made a second-straight quarterly profit in the final three months of 2018.

This quarter, Tesla hopefully can achieve “a tiny profit,” he said, but it will entail “great difficulty, effort and some luck.” The memo was later posted to Tesla’s website.

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