Tesla announced Tuesday it would cut 9 percent of its workforce in an effort to reduce costs.
The layoffs, first reported by Bloomberg and later confirmed by Tesla's CEO Elon Musk in a [tweet](https://twitter.com/elonmusk/status/1006597562156003328), will largely affect salaried employees and not the company's manufacturing line. Musk said the cuts were "difficult, but necessary" and won't hurt Tesla's ability to meet production targets for its Model 3 vehicle.
"They're focusing on the jobs that are going to be driving revenue and profit for the company and cutting everything else," said Galileo Russell, founder of HyperChange TV. "Obviously the Model 3 ramp is the most important thing right now and keeping that production line fully staffed is a must."
Tesla has experienced repeated production delays of its mass-market Model 3 for almost a year. Musk had said he expected to roll out 5,000 cars a week by the end of 2017, but with the assembly line mired in what he called "manufacturing hell," the target has been pushed back several times.
At the company's shareholder meeting last week, Musk said Tesla was now on track to make 6,000 Model 3 cars a week by the end of the month. That news sent shares soaring nearly 10 percent, their biggest gain since November 2015.
The stock was up as much as 7 percent Tuesday morning after the research firm Keybanc Capital raised its forecast for Model 3 deliveries by as much as 50 percent, to 35,000 cars, in the second quarter.
News of the layoffs ate into the stock's gains.
A Tesla spokesman said the job cuts would reduce Tesla's headcount to about 37,000 employees.
For full interview, [click here](https://cheddar.com/videos/tesla-to-cut-about-9-of-workforce).
A flow of recent data from the U.S. government has made one thing strikingly clear: A surge in consumer spending is fueling strong growth, demonstrating a resilience that has confounded economists, Federal Reserve officials and even the sour sentiments that Americans themselves have expressed in opinion polls.
The U.S. Food and Drug Administration is warning parents and caregivers not to buy or serve certain pureed fruit pouches marketed to toddlers and young children because the food might contain dangerous levels of lead.
Some pumpkin farmers in the West, particularly wholesalers in places like Colorado and New Mexico, are feeling the pinching effects of drought.
General Motors and the United Auto Workers union have reached a tentative contract agreement that could end a six-week-old strike against Detroit automakers, three people briefed on the deal said.
Apple's 8pm ET event Monday will revolve around its iMAC computer lineup of products which are expected to contain its new faster and three next-generation silicon chip.
McDonald's reported better-than-expected profit and sales in the third quarter.
Major stock indexes are slated to close lower this month as investors brace for the Federal Reserve's rate decision and ahead of new jobs data.
The Food and Drug Administration issued an alert and specifically mentioned 26 eye drop products from a number of brands.
Workers at a number of pharmacy chains nationwide were planning a walkout Monday and going through Wednesday.
President Joe Biden on Monday will sign a sweeping executive order to guide the development of artificial intelligence — requiring industry to develop safety and security standards, introducing new consumer protections and giving federal agencies an extensive to-do list to oversee the rapidly progressing technology.
