Tesla undecimates its workforce but Elon insists everything's absolutely fine

Tesla lays off roughly nine percent of workforce		
		
	Megan Rose Dickey

       @	   
   	7 hours

While the automaker has struggled with its ramp up, CEO Elon Musk said last week that the company could begin churning out 5,000 vehicles per week by the end of the month, a target it set out to hit by the end of the second quarter.

Tesla will lay off almost one in 10 of its workers but the cuts won't hamper its drive to meet production targets for the Model 3 sedan, according to company CEO Elon Musk.

The majority of Tesla employees working at Home Depot will be offered the opportunity to move over to Tesla retail locations, Musk wrote in his email.

Tesla shares, which are up almost 10 percent on the year, rose on news of the job cuts.

Tesla shares pared an earlier gain of as much as 6.9 per cent and were up 3.2 per cent to US$342.81 as of 2:21 p.m.in NY trading.

ICC overturns war crimes conviction for ex-Congolese leader Bemba
It was also the first to determine whether a military commander bore responsibility for the conduct of troops under his control. He said Bemba would probably go to Belgium to meet with his family there before returning to Congo after he is released.

The electric auto company needs the Model 3, its more affordable option, to succeed.

Tesla's announcement comes a month after Musk announced a restructuring of Tesla's organizational chart. 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. The firm has a sector weight rating and a $300 "fair value" price target on Tesla shares, which were up about 4% in pre-market trade Tuesday.

In the latest quarter, Tesla reported a record loss of $709.6 million (£522m), or $4.19 (£3) per share, for the first quarter ended March 31, compared with a loss of $330.3 million (£243m), or $2.04 (£1.50) per share, a year earlier.

While saying that Tesla is more focused on producing environmentally friendly cars than making money, Musk ask added that "we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable".

Musk also announced that the company's solar panel unit has made a decision to end its agreement to sell via Home Depot stores so it can focus on sales in Tesla's company stores and online. That makes these layoffs much more significant than the hundreds of workers Tesla fired last fall.

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