- Tesla sank Tuesday after a report said it was planning to lay off about 9% of its workforce.
- It's likely part of a restructuring plan hinted at by CEO Elon Musk in May.
- Follow Tesla's stock price in real-time here.
Shares of Tesla sank about three 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.
"We are conducting a comprehensive organizational restructuring across our whole company," CEO Elon Musk said in a company-wide email that he later shared on Twitter. "Tesla as grown and evolved rapidly over the past several years, which has resulted in some duplication of roles and some job functions that, while they made sense in the past, are difficult to justify today."
The job cuts will only impact salaried employees and not production associates, Musk said, as the company continues to struggle to meet its Model 3 production goal of 5,000 sedans per week. The company is currently producing just under 3,000 per week, Bloomberg estimates.
During the company's first-quarter earnings call in May, CEO Elon Musk said the company would begin restructuring operations in an effort to meet its profitability goals.
Shares of Tesla were up about 3.8% at the time of writing. They had previously spiked more than 7% in trading Tuesday. Tesla is up 11.3% this year.
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