Tesla to cut its workforce by 7 percent to ramp up Model 3 production, Elon Musk says

Tesla is cutting its full-time staff headcount by approximately 7 percent, as it looks to ramp up production of its Model 3 sedans, CEO Elon Musk said in a company update on Friday.

The job cuts come on the back of various cost-cutting measures the company has made of late, as it looks to boost margins and expand profitability.

“Tesla will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months,” Musk said in an email that was sent to Tesla employees.

“Attempting to build affordable clean energy products at scale necessarily requires extreme effort and relentless creativity, but succeeding in our mission is essential to ensure that the future is good, so we must do everything we can to advance the cause,” he added.

Earlier this week, the company discontinued the cheapest versions of its Model S sedans and Model X SUVs.

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