Tesla announced a 9% layoff in order to make profits.

Tesla announced a 9% layoff in order to make profits.

Tesla's 9% layoffs

[Global Times comprehensive report] the US electric vehicle and energy company Tesla has announced a 9% layoff in order to make profits. The US "Wall Street journal" 13, said that Tesla building mass market electric vehicles into the "non - success or failure" of the key period, in order to reduce costs to achieve profit, does not affect the Model 3 production, the company will lay off thousands of people.

Reuters said Mask, chief executive of Tesla, told employees in 12 days that layoffs were part of a commitment to streamline management structure. Tesla's layoffs will dismiss about 3500 employees. Tesla has not yet made a profit since its establishment in 2003. Layoffs have highlighted Musk's need to ease the pressure of burning money. So far, Tesla has accumulated a total loss of $5 billion 400 million, and will lose another $1 billion 300 million in the next 4 quarters. The Model 3 target, which began production in July last year, locked the Volkswagen electric car market as the key to the Tesla's increase in free cash flow, but has not reached its output target. Mask has promised that by the end of June, it will reach 5000 Model 3 targets in a single week. If this rate of production is sustained, Tesla will turn to profit in the third and four seasons. The Reuters said the job cuts meant there would be no more downsizing in the short term, but the model was not sustainable if Tesla turned its profits over the third and four seasons of the year. (Xian Yang)


Waonews is a news media from China, with hundreds of translations, rolling updates China News, hoping to get the likes of foreign netizens