Elon Musk says Tesla will cut 9% of its workforce

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Around 3,600 white-collar workers will lose their jobs, but factory workers-and consequently Model 3 production targets-will not be affected.

Tesla employs almost 40,000 employees worldwide, which means a 9 percent cut would translate to about 3,400 lost jobs.

Elon Musk, CEO of SpaceX and Tesla, speaks during the International Space Station Research and Development Conference in Washington, DC in July 2017.

Noting that a "difficult job" remains ahead, Musk added: "We are a small company in one of the toughest and most competitive industries on Earth, where just staying alive, let alone growing, is a form of victory". That growth means this round of cuts should leave the company with more employees than it had a year ago, although the layoffs remain a significant trimming of Tesla's workforce.

Tesla has not made an annual profit in its 15 years of doing business, and it has posted only two quarterly net profits. Tesla will, however, continue to take on new staff, as a "significant need for additional production personnel" remains within the company. In crunching these numbers, Ives projects the giant is poised to achieve Musk's goal by the end of the month- especially taking under account the latest commentary from the TSLA leader.

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Tesla has been facing mounting pressure from investors to ramp up production of its first affordable auto model, the Model 3.

Electrek on Tuesday also reported the company's layoffs and said the cuts began on Monday.

Tesla shares rose 2.5 percent to $340.34 in afternoon trading, after reaching as high as $354.97 around noon.

Musk confirmed the job cuts on social media after an internal email became public.

The biggest job cut in Tesla's 15-year history underscores the pressure Musk is under to stop burning through money - and start making some. He said most Tesla employees working at Home Depot will be offered a chance to move to Tesla retail locations. The laid off employees would receive "significant" salary payments and stock in Tesla as compensation. It is also concurrent with speculation by many publications that Tesla was about to run out of cash, something its CEO, Musk, had denied.

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