News of Tesla layoffs 2019 have the company’s stock falling on Friday.
Tesla (NASDAQ:TSLA) CEO Elon Musk sent an email off to employees explaining the need for the layoffs. In the Tesla layoffs 2019 email, Musk says that the company will be reducing its full-time employee work force by about 7%.
According to Elon Musk, the reason behind the Tesla layoffs 2019 is that the company can’t support its current number of full-time employees. He says that this is after it grew its number of full-time employees by 30% in the previous year.
Elon Musk also notes that the Tesla layoffs 2019 will see the company getting rid of most of its temporary and contract workers. TSLA will instead only be keeping the most most critical of these types of employees around.
Musk says that these changes are necessary if the electric car company wants to be able to compete in the market. He also points out that Tesla will need to improve manufacturing so it can turn out more Model 3 vehicles in the coming months. Musk is planning for manufacturing engineering improvements over the next few months to assist with this.
“While we have made great progress, our products are still too expensive for most people,” Elon Musk says in an email to employees. “Tesla has only been producing cars for about a decade and 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.”
TSLA stock was down 8% as of Friday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.
