Tesla to reduce workforce

Worldwide
Published:  18 January, 2019

The premium electric car manufacturer is to cut 7% of its workforce as the cars were ‘too expensive for most people’. The company does not offer leather as a standard seating material option.

Elon Musk, CEO, Tesla has also issued a warning for lower profits ahead. The carmaker expects to cut just over 3,000 jobs of its 45,000 workforce. Despite being the most challenging year in Tesla’s history, Musk said the Company had a successful 2018 with almost as many cars delivered as in the previous year but the mid-market Model 3 has failed to achieve its sales targets. "This quarter will hopefully allow us, with great difficulty, effort and some luck, to target a tiny profit”, said Musk, adding that Tesla was looking to offer lower priced variants of Model 3 in all markets. In June 2018, Tesla had already dismissed 9% of its workforce.

Shares of the California based electric carmaker are reported to have fallen -7.6%. Despite its market segment position the company does not offer leather interiors (apart from its steering wheels) in leather, preferring synthetic alternatives.

Sources: Bloomberg/BBC