https://www.mercurynews.com/2019/01/18/tesla-to-cut-7-percent-of-workforce-as-road-ahead-looks-very-difficult/ > Tesla Chief Executive Elon Musk stunned employees Friday when he said the electric carmaker will cut 7 percent of its workforce as it drives forward with its plans to produce a new, lower-priced version of its Model 3 sedan. > Musk made the announcement in a letter to Tesla employees that he posted on the company’s blog Friday morning. He said the reduction in Tesla’s workforce — the second in a year — is the result of several factors that the company is facing as it tries to move toward producing electric cars that are more for mass-market consumers, as opposed to what are seen as luxury cars for those capable of spending tens of thousands of dollars on a vehicle.