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On Friday, Tesla published a memo saying that the company will be laying off about 7% of its full-time employees in the US. The electric car maker will be cutting all non-core contractors in a race to bring the company to profitability and ramp up the $35 000 Model 3.
This round of job cuts follows a 9% cut of Tesla's US workforce in June, where the company said it would "eliminate bureaucracy and move faster". Tesla is also doing away with their referral program and cancelled the luxury 75Kwh version of the Model S.
According to CNBC, the ramp-up of the $44 000 Model 3 crippled the company to a point of near bankruptcy. Fortunately, Tesla was able to avoid the valkyries and now management is making sure that they up their cost control game and focus on output.
Some market pundits speculate that outside forces are now influencing the company's behaviour which has forced Tesla to go into full restructure mode. I think whatever is happening at Tesla today will help the company in the long-term when the cash flows start to accelerate due to today's efforts.
Linkfest, Lap it Up
How does something grow on the moon? Well it seems like cotton can - Cotton seeds carried on the Chang'e-4 probe have sprouted
Sticking with the moon and space. This is awesome to see - South African hardware is part of China's lunar mission - and is orbiting the Moon right now
