Tesla is cutting seven percent of its full-time employee headcount, Elon Musk announced in a company-wide email. In addition to the cuts, which come after the company’s headcount increased by 30 percent last year, Musk also announced that the company would be retaining, “only the most critical temps and contractors.” The move comes just a day after Tesla said it would be ending its customer referral program in an effort to cut costs.
In a blog post, Musk describes the “most challenging” year in Tesla’s history in which it launched the Model 3, the company’s first mass-market vehicle. Production of the car was beset by difficulties which limited the amount that Tesla could produce and the economies of scale it could achieve.
“Tesla will...