Elon Musk said it would reduce Tesla's workforce by seven percent, equivalent to more than 3,000 jobs, and warned that "the road to travel is very difficult" to make electric vehicles more affordable.
Shares fell 7.2 percent at the beginning of the day in the United States after the California company Alto, California, announced that it was barely able to make a profit in the last three months of 2018, according to a blog post. Released on Friday.
Tesla has been pushing the limit for spending much more than what Musk called the "most demanding" year in history. Although it was managed to increase the production of its model 3, the company did not reach the analysts' productive goal during the fourth quarter and had to lower prices to compensate for the reduction in half of the US. There. Credit that served as an incentive for buyers and which will decrease again in July before nothing ends at the end of the year.
Model 3 prices
The company has grown by 30 percent last year, which is "more than we can handle," MUSIC explains on this blog. It has absorbed some of the price challenges by selling only the most expensive model 3 model in the first instance. So far, the cheap vehicle configuration available, which has a base price of 35,000 US dollars. There. $ 44,000. As production increases in the coming months, the company will have to sell cheap versions, the executive said.
Tesla employs about 45,000 people in 2018, with an average of seven percent less than 3,150 jobs. The company also expands into Europe and China, which will be expensive, said Sven Diermeier, Frankfurt-based analyst at Independent Research.
"While we have made great strides, our products are still too expensive for most people," admitted Musk. "I want to make sure they know all the facts and figures and understand that the road to travel is very difficult."
Traditional car manufacturers also have problems with the high cost of producing electric vehicles. In addition to the historic investment in new electric car lines, high battery costs reduce margins and buyers, worried about laboratory and driving range, remain undecided.
The company must now achieve rapid advances in its manufacturing processes as model 3 increases, MUSC said.
"The advances in volume and manufacturing design are crucial for Tesla to achieve the economies of scale required to produce the standard range (220 miles or 354 kilometers), the standard 3 interior to US $ 35,000 model and to remain a viable company ", He sent. "There is no other way".