Tesla slides after report says it plans to cut 3,000 jobs

Graham Rapier

Jun 12, 2018, 23:30 IST

Shares of Tesla sank about two percentage points from their intra-day high on Tuesday after Electrek reported the company was planning to lay off over 3,000 employees - or roughly 9% of its workforce.
The blog learned of the cuts from an internal email which it says Tesla confirmed. CNBC and Bloomberg also reported the layoffs.
The job cuts will only impact salaried employees and not production associates, Electrek said, as it continues to struggle to meet its Model 3 production goals of 5,000 sedans per week. The company is currently producing just under 3,000 per week, Bloomberg estimates.
Shares of Tesla were up about 4% at the time of writing. They had previously spiked more than 7% in trading Tuesday.
Tesla shares are up 11.3% this year.
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