Elon Musk Said Tesla Decided To Cut More Than 7 Percent of Its Workforce
In businesses sometimes entrepreneurs have to take bold yet effective decisions to make sure that their company will be sustained in the future and that’s what is happening with Elon Musk’s Tesla Inc. Because in a recent press conference Tesla Inc. CEO Elon Musk said that the company is going to cut more than 7 percent of its current workforce to increase the production Model 3. Many speculations were going on from last few days regarding Tesla’s ongoing operations because many were predicting that due to constant losses the company is now out of liquid funds. Elon Musk while releasing this news said that this change is essential for the company’s ongoing operation of producing Model 3 cars and with this decision the company is now going to make some significant changes in its engineering process also.
Elon Musk said that “Tesla is trying to build affordable, clean energy products and to do that the company has decided to cut off its workforce to support the production of new and innovative cars”. From last few months, the company has earned a right amount of profits, but it was not enough for it to sustain the same of the workforce while continue producing Tesla model 3 cars. Earlier this week Tesla had declared that the company is going to stop the production of its Model 3 sedans and Model X SUVs. There are many big companies which are entering into electric vehicle industry due to that much competiton the company is finding itself in a hard position to produce innovative yet cost-effective cars.
Tesla CEO Elon Musk said that “It’s a tough challenge” to continue making model 3 cars and that’s the reason why the company is now laying off so many employees.