What is Tesla’s share price, is Elon Musk still CEO and why is the carmaker cutting 3,000 jobs
Thousands of workers are set to lose their jobs after cars became 'too expensive'
ELECTRIC carmaker Tesla has announced it will be axing thousands of jobs after its “most challenging” year in history.
Here’s what we know about the car maker and why its fortunes have taken a turn.
What is Tesla’s share price?
On January 18, 2019, stocks slumpedafter Tesla announced it was laying off seven per cent of its work force – equating to 3,150 employees.
The manufacturer also reported a “tiny” profit, scaring investors further.
On the same day as the announcement, Tesla shares fell by 5.35 per cent on a premarket volume of over 770,000 shares.
Tesla shares fell 13 percent by the end of trading Friday.
Why is Tesla cutting jobs?
Tesla is cutting its full-time staff by seven per cent, Elon Musk announced on Friday.
Despite ramping up production of its mid-market Model 3 car, CEO Elon Musk said its products were still too expensive for most people.
The car giant also reported a “tiny” profit for the last quarter – despite 2018 being Tesla’s “most successful” yet.
Musk emailed his employees, saying: “This quarter will hopefully allow us, with great difficulty, effort and some luck, to target a tiny profit.
“However, starting around May, we will need to deliver at least the mid-range Model 3 variant in all markets, as we need to reach more customers who can afford our vehicles.
“Moreover, we need to continue making progress towards lower priced variants of Model 3.”
He said Tesla had “no choice” but to reduce full-time employee headcount and retain “only the most critical temps and contractors”.
Tesla employs more than 45,000 people, with seven per cent of its work force equating to around 3,000.
Is Elon Musk still CEO?
Musk was forced to resign as Tesla chairman and pay a 15million fine in September 2018 after settling a deal with US regulators over tweets about taking the company private.
He will remain as Tesla CEO but will have to step down as chairman for three years.
In August 2018, Musk said he wrote he had “funding secured” for the proposal, which would value Tesla at $420 per share.
Shares in the company soared for a short period, but later plunged.
The US Securities and Exchange Commission said his claims were “false and misleading”.