Tesla to cut 7% of its workforce

Bengaluru - The announcement was made as Tesla ramps up production of its Model 3 sedan.

Tesla said it would cut thousands of jobs to rein in costs as it ramps up production of its crucial Model 3 sedan, and the electric car maker expects fourth-quarter profit to be lower than the previous quarter, sending its shares down 7 per cent.
The company has long struggled with cash burn and chief executive officer Elon Musk has been under intense pressure to stabilise production of the Model 3, seen critical for easing a cash crunch and achieving long-term profitability.
"I want to make sure that you know all the facts and figures and understand that the road ahead is very difficult," Musk said in an e-mail to employees that was published on the company's blog.
"There isn't any other way."
This is Tesla's second job cut in seven months and comes just days after it cut US prices for all vehicles and fell short on quarterly deliveries of its mass-market Model 3 sedan.
"This quarter, as with the third quarter, shipment of higher priced Model 3 variants [this time to Europe and Asia] will hopefully allow us, with great difficulty, effort and some luck, to target a tiny profit," Musk said.
The company reported a profit of $311.5 million, or $1.75 per share, for the third quarter ended September 30.
Musk, who has often set goals and deadlines that Tesla has failed to meet, surprised investors by delivering on his pledge to make the company profitable in the third quarter, for only the third time in its 15-year existence.
Tesla said on Friday it would reduce full-time employee headcount by about 7 per cent and retain only the most critical temps and contractors.
In June, the company said it was cutting 9 per cent of its workforce.
As of December 31, 2017, Tesla had 37,543 full-time employees, according to its latest annual filing. 
...and recalls 14k cars in China
Tesla will recall over 14,000 Model S cars in China as part of the global automotive sector's effort to replace potentially dangerous airbags made by Takata, China's market regulator announced on Friday.
The US giant will recall imported Model S cars made between February 2014 and December 2016, the State Administration of Market Regulation said, joining other carmakers in an effort affecting tens of millions of cars worldwide. Takata went bust in 2017 after defective airbags were blamed for a number   of deaths.
The Chinese regulator said the passenger-side airbags of the affected Model S cars were equipped with a Takata-made device containing an ammonium nitrate propellant. Under certain conditions the device can break, ejecting debris that can cause injury.
Tesla will replace the defective devices, the company said.
A Tesla spokesperson said the move was part of a phased recall under a schedule previously set by the US National Highway Traffic Safety Administration.