Tesla layoffs loom and its stock price plunges as Musk shifts focus from growth to survival

In an email to employees Friday, Tesla Chief Executive Elon Musk painted a dim picture of the company’s near future. He said Tesla’s cars are “still too expensive for most people,” and that to cut costs, the company would have to cut 7% of its full-time workforce.

Tesla’s stock plunged 13% on the news, closing Friday at $302.26 per share.

In the email, Musk warned employees — and, by extension, Tesla’s investors — that profit will be down in the fourth quarter and a loss in the first quarter of 2019 is possible. “Tesla must work much harder than other manufacturers to survive while building affordable, sustainable products,” Musk wrote.

That rubs against what Musk told investors last October, when the company posted a rare quarterly profit. Tesla will be profitable and have positive cash flow going forward, he said then, and would not need to raise new capital.

Read the entire article at LAtimes.com