Elon Musk buys $25M in Tesla stock

Lloyd Doyle
June 14, 2018

"As part of this effort, and the need to reduce costs and become profitable, we have made the hard decision to let go of approximately 9 percent of our colleagues across the company", Musk wrote in his email.

Tesla's AutoPilot engineers have been pushing out updates to make sure drivers pay attention to the road when using the driver assistance system.

Tesla is cutting 9% of its workforce as it races toward profitability, chief executive Elon Musk said Tuesday (June 12). The company posted its largest quarterly loss, of more than $700 million, earlier this year.

Musk also clarified that just the salaried employees will be impacted by the decision and the planned layoffs will not affect the production of the Model 3 as there will be no production associates are being be cut.

It could be a signal to employees and Wall Street that he's still optimistic about the future of Tesla.

SpaceX founder Elon Musk smiles at a press conference following the first launch of a SpaceX Falcon Heavy rocket at the Kennedy Space Center in Cape Canaveral, Florida, U.S., February 6, 2018. Tesla still has a significant need for production workers as it tries to reach Model 3 manufacturing targets, he wrote in the email.

The report comes amidst other significant news becoming public, that the company is laying off almost 10% of its workforce. A majority of Tesla employees working at Home Depot will get offers to work in Tesla's own stores.

Tesla has been trying to hit a 5000 per week production target for its Model 3 sedan after facing initial production hiccups.

Consumer Edge Research Analyst James Albertine wrote in a note to investors that he views the moves "as a positive in helping Tesla track toward profitability later this year". It can easily top $50,000 with options.

Other reports by Iphone Fresh

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