Fired Tesla Workers Still Love Elon Musk

Tesla firing 9% of its workforce

Tesla cutting about 9% of workforce as Musk pursues profitability -

He said: "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".

Tesla will cut roughly 9 per cent of its workforce as part of a restructuring led by chief executive Elon Musk.

He emphasised on the fact that Tesla has never made an annual profit.

In May, Tesla posted first-quarter results showing the company made a record £523m ($710m) net loss after burning through a massive £549m ($745.4) cash pile attempting to ramp-up production of its highly-anticipated Model 3 sedan. He thanked departing employees for their hard work and said Tesla is providing "significant salary and stock vesting" to those being let go, based on their length of service.

Elon Musk has bought $25m (£19m) worth of stock in Tesla, as the electric auto company announced it was slashing 9pc of jobs due to "duplication of roles".

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The layoffs mean there likely will not be more job cuts in the near-term, said Efraim Levy, analyst at CFRA Research, adding that Tesla will likely raise capital early in 2019.

The report comes amidst other significant news becoming public, that the company is laying off almost 10% of its workforce.

Also of note is that Musk has a somewhat unconventional pay package at Tesla in which he'll be granted additional stock options as the company hits milestones.

He wrote that reaching Musk's Model 3 production goal of 5,000 vehicles per week by the end of June is still the primary driver of profitability. A majority of Tesla employees working at Home Depot will get offers to work in Tesla's own stores. "A focus on "getting lean" is a positive with respect to Tesla's guidance for achieving consolidated profitability in 2018, in our view", he wrote.

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