The exact number of employees who will be laid off has not been disclosed. However in an October tweet, Musk said Tesla had a staff count of 45,000. If still true today, that would mean 3,150 layoffs.
Earlier this week, the company discontinued the cheapest versions of its Model S sedans and Model X SUVs. And Musk said on Thursday that the electric car maker would also ditch its customer referral program, which rewarded perks likes six months of free charging, because it was “adding too much cost to the cars.”
Musk said Friday that Tesla faces “an extremely difficult challenge” in making its electric vehicles and solar products a competitive alternative to traditional vehicles and energy products that rely on fossil fuels.
“Starting around May, we will need to deliver at least the mid-range Model 3 variant in all markets, as we need to reach more customers who can afford our vehicles,” Musk said.
“Moreover, we need to continue making progress towards lower priced variants of Model 3.”
The cheapest version of Tesla’s Model 3 costs $44,000, and the company is looking to release a $35,000 version. Musk said in a CBS interview in December that the company was “not that far from being able to produce the $35,000 car,” adding that it would “probably be ready in about five or six months.”
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