
Tesla’s chief executive, Elon Musk, plans to cut 10 percent of the electric carmaker’s salaried work force, he told staff in an email on Friday.
The job cuts will not apply to employees who build cars or batteries or who install solar panels, and the number of hourly employees will increase, Mr. Musk said in the email, a copy of which was reviewed by The New York Times. “Tesla will be reducing salaried head count by 10 percent, as we have become over staffed in many areas,” he said.
Reuters reported the news earlier, citing a different email that Mr. Musk sent only to Tesla executives. The automaker’s share price closed on Friday down about 9 percent after that article was published.
Tesla’s staff has grown substantially as sales have surged and it has built new factories, including two that opened this year near Berlin and Austin, Texas. The company employed more than 99,000 workers at the end of last year. Just two years earlier, Tesla had 48,000.
2017 and 2018.
In recent weeks, investors have begun questioning the company’s sky-high stock price. The market values the company at more than $728 billion, more than several other large automakers combined. Tesla’s shares are down about 40 percent from their high at the end of last year, bringing attention to the risks the company faces from growing competition, accusations of racial discrimination and production problems at its factory in Shanghai.
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