Musk Tweets – Tesla To Eliminate Off 9% Of Workforce
Elon Musk took to Twitter to tell the world that Tesla is laying off approximately 9% of its workforce as it seeks to turn a profit or at least show the world its intention to eventually be profitable.
The first question that comes to mind is “will Tesla Model 3 production be affected?” Musk says no.
Here is the Tweet, followed by the revealing email sent by Musk to the Tesla workforce:
Difficult, but necessary Tesla reorg underway. My email to the company has already leaked to media. Here it is unfiltered: pic.twitter.com/4LToWoxScx
— Elon Musk (@elonmusk) June 12, 2018
This is not the first time Tesla has taken a similar action in regards to laying off employees. In fact, a similar tact was taken in early May, but the reasoning was a bit different.
This time though we do have a firm 9% reduction figure.
Here are the financial highlights (or lowlights, if you prefer) from the most recent Tesla conference call:
Tesla was expected to report an adjusted loss of $3.26 a share on revenue of $3.142 billion in the quarter.
Tesla’s actual reported results are:
- Revenue of ~$3.41 billion
- Loss of $4.19 per share (GAAP)
- Loss of $3.35 per share (non GAAP)
- Net loss of $784.6 million
The automaker reports $2.67 billion in cash at end of Q1, down from $3.37 billion at end of 2017.
And now for that email, which was posted in its entirety by Musk himself.