TESLA CEO Ilon Musk announced that the company cuts 7 percent of its full-time employees to cut costs and increase profits. He showed that although Tesla would make a second consecutive quarterly profit, it would be less than last quarter profits. In recent years, Tesla has increased its work to hundreds of thousands of orders.
"Last year we increased by 30 percent, which is more than we can maintain on the production line."Said MUSC, adding that the company will retain its most critical employees and subcontractors.
Tesla will have to make the cat while increasing the production rate of Model 3 and make many improvements in manufacturing engineering in the coming months. He said in a public letter to employees.
Greater volume and improvements in manufacturing design are crucial for Tesla to achieve Economies of scale, Need to produce model 3 with a standard mileage (300 kilometers), a standard interior of $ 35,000 and still be profitable.
SpaceX Musk has also recently announced he would release 10 percent of his workforce to fund other projects. With success with both companies, MUSC is now determined to spend less. Last summer, Tesla announced it would fire up to nine percent of its workforce after the model 3 production began to move into norms. At this point, the company employs 46,000 people, so the additional lions were inevitable, with Tesla sales still lower than other manufacturers.
"There are many companies that can offer A better work-life balance, Because they are bigger and more mature or in industries that are not so competitive Says mus. "The attempt to build affordable, clean energy products on a large scale necessarily requires extraordinary effort and cruel creativity, but success in our mission is to ensure that the future is good so we must do our best to achieve that."