INTERNATIONAL - Tesla Inc said it would cut thousands of jobs to rein in costs as it ramps up production of its crucial Model 3 sedan, and the electric car maker expects fourth-quarter profit to be lower than the previous quarter, sending its shares down 7 percent.
The company has long struggled with cash burn and Chief Executive Officer Elon Musk has been under intense pressure to stabilize production of the Model 3, seen critical for easing a cash crunch and achieving long-term profitability.
“I want to make sure that you know all the facts and figures and understand that the road ahead is very difficult,” Musk said in an email to employees that was published on the company’s blog.
“There isn’t any other way,” he said.
This is Tesla’s second job cut in seven months and comes just days after it cut US prices for all vehicles and fell short on quarterly deliveries of its mass-market Model 3 sedan.