Tesla is reducing its workforce in search of profitability.
The American electric car maker has announced that it will look to cut about nine per cent of its salaried workforce, which means that factory and production line workers on hourly rates will not be affected. American news outlet CNBC has put Tesla's current workforce at about 46,000.
In an email sent to staff, which Tesla chief Elon Musk has since tweeted, the company says that Tesla must show that it can be profitable if it is to survive.
"Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us. What drives us is our mission to accelerate the world's transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable." Said the Tesla boss in an email to staff.
Difficult, but necessary Tesla reorg underway. My email to the company has already leaked to media. Here it is unfiltered: pic.twitter.com/4LToWoxScx— Elon Musk (@elonmusk) June 12, 2018
Tesla's poor financial record has led to the electric car maker being heavily shorted on the stock market and questioned about its future longevity within the media.
The job cuts and Tesla's stated aim of becoming profitable comes at a critical time when the company has been burning through cash reserves in an attempt to produce its mainstream and affordable Model 3 compact luxury sedan.
Tesla recently announced that it will start production of its range-topping dual-motor all-wheel drive Model 3 variants. Tesla has also said that it is getting closer to the Model 3's production goals of 5000 vehicles a month, which is a sign that the company might be coming out the other side of what Musk described late as "production hell".