Tesla's head stated that this decision is related to the desire to reduce costs and achieve break-even.
The cuts will not affect employees directly involved in the assembly of electric vehicles. According to Musk, this will not impact the production of the new Model 3. Currently, the company employs more than 37,000 people.
Earlier, the American manufacturer admitted that the production rates of the Model 3 are still lagging behind expectations. After updating production lines, the company plans to assemble up to 5,000 electric cars weekly. It is expected that this figure will be achieved by the end of the second quarter of 2018. Tesla's management attributed the disruption in the Model 3 production schedule to a limited number of component suppliers.
