Tesla Cuts 3,000 Jobs To Lower Costs, Make The $35K Model 3 Viable

Tesla Motors announced it will cut its workforce by 7 percent, which equals to over 3,000 jobs, in an email sent to all of its employees in its bid to limit spending and make way for the cheaper versions of the Model 3.

The announcement caused Tesla’s share price to fell by as much as 8.4 percent before the start of regular U.S. trading, according to Bloomberg.

“We unfortunately have no choice but to reduce full-time employee headcount by approximately 7% (we grew by 30% last year, which is more than we can support) and retain only the most critical temps and contractors”, the company’s email read.

This is the second time Tesla is laying off employees. Last June, it dismissed 9 percent of its workforce, although it started hiring people on an increased rate shortly after to help ramp-up production of the Model 3.

“Tesla will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months,” the company added. “Higher volume and manufacturing design improvements are crucial for Tesla to achieve the economies of scale required to manufacture the standard range (220 mile), standard interior Model 3 at $35k and still be a viable company. There isn’t any other way.”

The Palo Alto-based manufacturer also acknowledged the need to launch at least the mid-range Model 3 in all markets by May of this year in order to reach more customers.

“We’re up against massive, entrenched competitors. The net effect is that Tesla must work much harder than other manufacturers to survive while building affordable, sustainable products.”

more photos...
Robert Kubica To Test BMW M4 DTM After Unsuccessful F1 Return

Kubica’s BMW ties date back to his Sauber days, and he could get a seat if he performs at the Jerez test.

WEC’s Top Tier Class To Be Officially Named ‘Le Mans Hypercar’

Teams in the Le Mans Hypercar class have been given unlimited testing mileage for the first year.

Hyundai RM19 Midship Prototype Is A Sign Of Things To Come

Hyundai’s mid-engined sports car could arrive within three to four years.

Arizona Governor Joins Lucid Motors At Site Of Arizona Factory

The Lucid Motors factory will generate $32 billion in revenue over the next 20 years.

315 Mile Mercedes-Benz SLR McLaren Stirling Moss Desperately Needs Someone To Drive It

This Mercedes-Benz SLR McLaren Stirling Moss has a cool $2.55 million asking price.

Porsche Exclusive Creates Subtle Cayenne Turbo S E-Hybrid Coupe

The Porsche Cayenne Coupe in question looks subtle with its Quarzite Gray Metallic paint.

This Guy 3D-Printed His Own Tesla Cybertruck Scale Model And You Can Too

All it takes is 15 hours of work and plenty of patience, but the final result is impressive.

FCA-UAW Contract Reveals Durango Hybrid, Ram TRX Launch Date And Lots Of New Jeeps

The contract also calls for fresh models based on the Jeep Cherokee’s platform.

Buick Regal’s Demise Tipped To Kill Australia’s Holden Commodore Too

Holden has sold just 5,400 Commodores this year, which is a far cry from its illustrious past.

VW Teases Nivus Crossover Coupe For South America, Will Eventually Come To Europe

The model promises to be one of the first mainstream crossover coupes.