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Tesla to cut workforce by 7% and focus on Model 3 production

Natasha Lomas
Tesla to cut workforce by 7% and focus on Model 3 production

Tesla is cutting 7 percent of its full-time workforce. The company disclosed the headcount reduction in an update emailed to all employees and also posted to its website. "Tesla will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months. Higher volume and manufacturing design improvements are crucial for Tesla to achieve the economies of scale required to manufacture the standard range (220 mile), standard interior Model 3 at $35k and still be a viable company.