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).
Tech companies of all sizes are showing off their latest gadgets at CES 2024 in Las Vegas. And that includes new technology that's changing the world of food and drinks.
Matt Hougan, CIO of Bitwise Asset Management, gives Cheddar the latest on the Securities and Exchange Commission approval of bitcoin ETFs. Hougan calls this time a 'potential major milestone for bitcoin.'
LeBron James has agreed to an exclusive deal with Fanatics Collectibles. James and his son, Bronny, will appear together on a unique sports trading card to herald the Los Angeles Lakers superstar’s new multiyear partnership with Fanatics.
Joe Zhao, Managing Partner at Millennia Capital, joined Cheddar to discuss the latest stock moves and how the market is being impacted by artificial intelligence.
Wall Street was quiet early following a lackluster session a day earlier as markets await U.S. inflation data and high-profile corporate earnings reports later in the week.
The World Economic Forum says false and misleading information supercharged with cutting-edge artificial intelligence is the top immediate risk to the global economy.
CES 2024 starts this week in Las Vegas. It's set to feature swaths of the latest advances and gadgets across personal tech, transportation, health care, sustainability and more. Here's a list of the coolest announcements so far.
Astronauts will have to wait until next year before flying to the moon and another few years before landing on it. NASA on Tuesday announced the latest round of delays in its Artemis moon-landing program.
