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Reuters
Electric carmaker Tesla has said it will cut its workforce by 7% after the “most challenging” year in its history.
In an email to employees, shared on the firm’s website, founder Elon Musk said that growth at the firm had been strong.
But he added the firm’s cars were still “too expensive for most people” and the road ahead was “very difficult”.
The firm employs more than 45,000 people currently meaning it will lay off over 3,000.
Mr Musk said 2018 was Tesla’s “most successful” yet, in which it delivered almost as many cars as it had in all the previous years of its existence combined.
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However, while it ramped up production of its mid market Model 3 car, it said its products were too expensive for most people and its profits too low.
“This quarter will hopefully allow us, with great difficulty, effort and some luck, to target a tiny profit,” he wrote.
“However, starting around May, we will need to deliver at least the mid-range Model 3 variant in all markets, as we need to reach more customers who can afford our vehicles.
“Moreover, we need to continue making progress towards lower priced variants of Model 3.”
He said as a result of the firm’s challenges, Tesla had “no choice” but to reduce full-time employee headcount and retain “only the most critical temps and contractors”.
He added the firm would need to make these cuts while “increasing the Model 3 production rate” and making many “manufacturing engineering improvements in the coming months”.