Elon Musk has recently announced to the public that he plans to reduce his workforce by 7%. This is because he hopes to make his Model 3 easier and faster to produce. He has emphasized how he will only be keeping the most advanced and skilled contractors along with critical temporary employees. In his letter that he posted online, he stated that he is competing with various companies and he needs to make his products more available and affordable to the average consumer.
It is estimated that around 3,000 workers for Tesla will lose their jobs after the job cuts take place. This decision is estimated to make the cost of the Model 3 to drop to around $35,000. The announcement has caused Tesla's stock prices to plummet. On Friday, their stocks fell by 12.97%.