Tesla to cut jobs as cars 'too expensive'

Model 3					Tesla’s Referral Program will officially come to an end on February 1

Tesla will cut its full-time workforce by around 7% in a move to reduce costs and allow production of the Model 3 to be ramped up, according to an email sent to employees by Elon Musk.

Tesla said that it would be cutting its full-time staff numbers by 7 per cent, out of a workforce of 45,000 employees, as it attempts to increase production of its Model 3 saloon vehicle.

Musk said it had also been a good year because Tesla had sold nearly as many cars in 2018 as it had in its entire history and the firm had made its first profit. Musk pointed out, though, that the third quarter's profit was partly the result of a strong push to sell higher-priced variants of the vehicle - the Long Range Model 3 AWD and the Model 3 Performance - to customers in North America. Shares in Tesla fell 10 per cent after the news. At the end of the email, Musk mentions that Tesla has the most exciting upcoming products of any "consumer product company", saying that "full self-driving", the Semi truck, the new Roadster, a pickup, a Model Y crossover, and more are all on the way.

If somebody comes and makes a better electric auto than Tesla and it's so much better than ours that we can't sell our cars and we go bankrupt, I still think that's a good thing for the world.

'Attempting to build affordable clean energy products at scale necessarily requires extreme effort and relentless creativity, ' he said in the memo.

Mueller Asks Judge to Delay Sentencing of Ex-Trump Campaign Aide Gates
The latest request for more time before sentencing came in a joint filing by Mueller's office and Gates' lawyers to U.S. In August, Manafort was convicted on several bank and fraud charges in a separate Virginia federal case.

US Senators Introduce Bill Targeting US Export to China's Telecom Industry
US lawmakers have also banded together to ban chip sales to Huawei, ZTE, and other mainland companies to over sanctions violations.

Pregnant Meghan Markle called a 'fat lady' by doting pensioner
Her stretchy "Mama" dress from H&M's maternity range will no doubt be flying off the shelves. "I'll take it!" Meghan replied, cradling her burgeoning bump.

While Tesla has begun cranking out enough Model 3s to overtake most other luxury automakers, it still hasn't reached the magic 5,000-cars-per-week number over time. He added that Musk appears to be positioning Tesla to be a more "product diversified" company by offering more price points and selling more cars internationally. Assuming that's still the case, a 7 percent cut would be about 3,150 workers.

"In Q3 previous year, we were able to make a 4% profit", Musk said in a blog post.

Earlier this month, Tesla cut the price of all its cars by $2,000 to partially offset the $3,750 reduction in the federal tax credit that took effect on January 1.

"The road ahead is very hard", Musk said. Such a system would likely serve Tesla well, at least until the company could start producing the Standard Range Model 3, which starts at the ever-elusive price of $35,000.

Tesla's announcement today made several references to lower-priced EVs while ignoring competitiveness at the top end of the market - perhaps Tesla has already reconciled with losing market share among a group of more expensive electric vehicles while losing confidence in a never-ending pool of wealthy buyers who would consider Tesla.

Related news:

Hot News

isis-killer-beheading-video-story-top Manafort suspected of sharing polling data with associate linked to Russian intelligence
Jan 19, 2019 - 00:57
Four redacted portions of the filing, including two dealing with Kilimnik, are visible when pasted into a Microsoft Word document. Prosecutors said that they met 12 times with Manafort, and he testified twice to a grand jury, on October 26 and November 2.

isis-killer-beheading-video-story-top Get ready for Super blood wolf moon
Jan 19, 2019 - 00:54
You will be able to see the eclipse with the naked eye, but if you have binoculars, take them out of the drawer for a better view. Super moons will look about 7 percent bigger than an average full moon (and 12 to 14 percent bigger than a full moon at apogee).

isis-killer-beheading-video-story-top Canadians treated to total lunar eclipse and supermoon Sunday night
Jan 18, 2019 - 03:27
There's no violence involved, instead, the term comes from a reddening of moon, as light leaks around the edge of Earth. With all the traces of direct sunlight gone, the moon will glow a shade of fiery orange for over an hour.

isis-killer-beheading-video-story-top Brexit: Rule out no-deal, Jeremy Corbyn tells Theresa May
Jan 18, 2019 - 02:52
May said the European Union would allow this "if it was clear that there was a plan towards moving towards an agreed deal". Companies warned of catastrophic job losses and chaos at ports if there was no deal.

isis-killer-beheading-video-story-top Arsenal manager Emery deflects question on Ozil future
Jan 18, 2019 - 02:13
They have slipped six points adrift of the Premier League's top four, with a resurgent Manchester United having pulled level with them in the battle for Champions League qualification.

isis-killer-beheading-video-story-top Australian Open 2019: Lleyton Hewitt laughs off Bernie Tomic accusations
Jan 18, 2019 - 02:04
Nick Kyrgios appears to have burnt his Davis Cup bridges by having a second dig at Australian captain Lleyton Hewitt . I think once that sort of gets resolved we'll see. "I think (the focus on these issues) is ridiculous, to be honest".

isis-killer-beheading-video-story-top Oklahoma's Kyler Murray declares for the NFL Draft
Jan 17, 2019 - 04:42
Heck, even new Arizona Cardinals head coach Kliff Kingsbury has gone on record stating he'd take Murray first overall if he could. Not only is he good enough to play two sports in college , he's good enough to succeed in two sports at the highest level.

isis-killer-beheading-video-story-top Alexandria Ocasio-Cortez to Serve on House Financial Services Committee
Jan 17, 2019 - 04:38
Speaking to The Hill on Tuesday, Ocasio-Cortez cited new polling data showing a majority of Americans support the idea. Alexandria Ocasio-Cortez. "Who cares?" Trump said of her comments, brushing off the question with a hand gesture.

isis-killer-beheading-video-story-top Bengals miss out on Gary Kubiak as he joins Vikings
Jan 17, 2019 - 03:35
Wednesday, nearly a week after his formal introduction as the Broncos' head coach , Fangio offered his best answer yet. Special teams coordinator Tom McMahon is expected to have the same role when Fangio finalizes his coaching staff.

isis-killer-beheading-video-story-top New Gillette advert addresses 'toxic masculinity' and MeToo movement
Jan 17, 2019 - 03:33
However, it ends by showing men in a positive light, standing against harassment and being an example for the younger generation. He says there is no reason why a multi-billion dollar company should steer away from a message it feels is important.

isis-killer-beheading-video-story-top USA service members killed in Syria attack: Coalition
Jan 17, 2019 - 03:26
The two sides began joint patrols around Manbij in November as part of an agreement for easing tensions between the two allies. Sharfan Darwish, a spokesman for the Kurdish-led Manbij Military Council (MMC), said the blast took place on a crowded street.

isis-killer-beheading-video-story-top Amid Brexit Chaos, Theresa May's Government Survives Confidence Vote
Jan 17, 2019 - 02:31
At present the country is due to leave on March 29 but the government could ask the European Union to extend that date. The magic number the prime minister needed to win the crucial House of Commons vote on her Brexit deal was 318.

isis-killer-beheading-video-story-top PG&E, utility tied to California wildfires, to file for bankruptcy
Jan 17, 2019 - 01:56
Shares of PG&E crashed to $8.38 per share on the back of the bankruptcy news, plummeting more than 52%. He said the utility should "honor promises made to energy suppliers and to our community".

isis-killer-beheading-video-story-top Sharapova Wins First Round at Australia Open Despite Traumatic Start of Season
Jan 16, 2019 - 04:54
Eleventh seed Aryna Sabalenka, widely tipped as a potential future champion, also safely negotiated round one on a hot day. Chuckling even further, Nadal added: "I know, you were closing your eyes to be more focused on what I was saying".

isis-killer-beheading-video-story-top Extremists attack hotel in Nairobi; al-Shabab claims role
Jan 16, 2019 - 03:13
Some people ducked behind cars, screaming, while others took cover behind fountains and other features at the lush complex. An unnamed eyewitness told Citizen TV he had also seen five bodies, however it was unclear if these were the same victims.