Tesla fires 9% of staff, tries to find some profitability

Tesla is struggling to make 5000 Model 3 sedans every week, and is burning through cash, so it’s decided to fire 9% of its workforce.

Given how quickly the company is running of cash, and how its struggles to make enough Model 3s to satisfy preorders, it’s surprising it’s taken this long.

On Twitter, he posted his email to employees explaining the move:

“As described previously, we are conducting a comprehensive organizational restructuring across our whole company. Tesla has grown and evolved rapidly over the past several years, which has resulted in some duplication of roles and some job functions that, while they made sense in the past, are difficult to justify today.

“As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9% of our colleagues across the company. These cuts were almost entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months.

“Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us. What drives us is our mission to accelerate the world’s transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable. That is a valid and fair criticism of Tesla’s history to date.”

Joshua Thompson

Joshua Thompson

News editor — Joshua deals with numbers for a living, but cars are his lifelong passion. He loves all, from his dream Stingray through to his first car, a Mercury Tracer.

Tesla fires 9% of staff, tries to find some profitability