Tesla cuts 9 percent of workforce in bid to post profit

He emphasised on the fact that Tesla has never made an annual profit

In an e-mail he said had been sent to staff, billionaire Chief Executive Elon Musk said on Tuesday that the cuts were part of a simplification of Tesla's management structure promised last month.

Musk said that the job cuts are part of Tesla's restructuring process.

"Tesla has grown and evolved rapidly over the past several years, which has resulted in some duplications of roles and some job functions. 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 hard to justify today", the email reads.

Musk conceded that Tesla has not made an annual profit in 15 years.

It wouldn't be the first time Musk has undertaken such a gambit.

"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", Musk wrote.


Tesla's Autopilot semi-autonomous vehicle tech has been implicated in numerous crashes lately, and though it's been tough to say where the blame for these incidents lies, Tesla is convinced their software isn't at fault.

The report comes amidst other significant news becoming public, that the company is laying off almost 10% of its workforce.

Tesla shares rose 2.5 percent to $340.34 in afternoon trading, after reaching as high as $354.97 around noon.

Also of note is that Musk has a somewhat unconventional pay package at Tesla in which he'll be granted additional stock options as the company hits milestones. The company will seek to re-employ most Tesla employees at Home Depot stores at its own locations.

Tesla's profitability has been based on the firm hitting a 5,000 per week production target of its Model 3 sedans after facing initial production hiccups. "A focus on "getting lean" is a positive with respect to Tesla's guidance for achieving consolidated profitability in 2018, in our view", he wrote.

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