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Money Tesla cuts nine per cent of staff as Elon Musk aims at profitability

06:15  13 june  2018
06:15  13 june  2018 Source:   cityam.com

Tesla Model 3: BMW M3-rivalling Performance version confirmed

  Tesla Model 3: BMW M3-rivalling Performance version confirmed Elon Musk reveals two dual motor, all-wheel-drive Model 3 variants, including a 155mph Performance version that he claims "will beat anything in its class on track"The South African released the details in a series of tweets, confirming both a dual motor all-wheel-drive Model 3, and the Performance variant, which will use a similar powertrain design. Similar to dual motor models being developed by other manufacturers, the all-wheel-drive system will feature motors at the front and rear of the car.

The company is ready to be profitable , Tesla CEO Elon Musk recently wrote in an email to staff , and needs to whittle Musk wrote that he expects to reach full GAAP profitability in the third and fourth quarters of 2018. Originally, Musk aimed to produce 5,000 Model 3s a week by the end of 2017.

Elon Musk said the cuts will affect salaried staff , not factory works, with pressure mounting to meet Model 3 targets. Tesla is slashing thousands of jobs, its chief executive Elon Musk announced Tuesday, as the electronic car company attempts to hit production targets and reach profitability .

Electric car maker Tesla is cutting several thousand jobs across its workforce. © getty Electric car maker Tesla is cutting several thousand jobs across its workforce. Electric car maker Tesla is cutting several thousand jobs across its workforce in a bid to reduce its costs as it ramps up production on the Model 3, chief executive Elon Musk confirmed in a tweet last night.

In an email sent to staff, Musk said the cuts, equivalent to about nine per cent of staff, had been preplanned as part of a “thorough reorganisation” of Tesla’s management structure.

The company adjusted its production targets for the Model 3 down to 5,000 cars per week, to be reached by the end of June.

“As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9 percent of our colleagues across the company,” the email read.

Everything wrong with Tesla

  Everything wrong with Tesla It’s fair to say that few companies have shaken up the market like Tesla has. And from the outside it would appear that the company is going from strength to strength. Its new products aren’t just packed with the latest technology and bang up-to-date electric powertrains, but Tesla is also at the forefront of home solar energy generation, electricity storage in batteries, and autonomous driving.

‘It is not rude to leave’: Elon Musk says excessive meetings are a ‘blight’, urges staff to ‘walk out’. I have asked the Tesla finance team to comb through every expense worldwide, no matter how small, and cut everything that doesn’t have a strong value justification.”

Why Tesla Stock Should Not Electrify You. — Elon Musk (@ elonmusk ) April 13, 2018. Tesla went through nearly 0 million during the first three months of the year to make its cars, pay its sales staff and cover the other costs of running its business.

“These cuts were almost entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months.”

a sign in front of a building © Provided by CityAM Musk also said an existing residential sales agreement with US chain Home Depot will not be renewed, and it would refocus on sales through its own channels.

Analysts expect Tesla to begin raising fresh capital later this year, despite statements from Musk that he expects it to hit profitability within the third or fourth quarter.

Tesla’s share price rose by 3.21 per cent to $342.77 at market close.

Elon Musk emails employees about 'extensive and damaging sabotage' by employee .
According to correspondence attained by CNBC, a fire at Tesla's Fremont, California plant interrupted vehicle production there on Sunday night.Now, CNBC has learned that Musk also sent an e-mail to all employees at Tesla late on Sunday night alleging that he has discovered a saboteur in the company's ranks.

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