Hyperdrive

Musk’s Model 3 Miscalculation Culminates in Major Tesla Job Cuts

Electric-car maker to dismiss about 9% of workforce, CEO says
Firings follow bungled first attempt to mass-produce a sedan

Tesla says it’s making job cuts across the company. Bloomberg’s Dana Hull reports.(Source: Bloomberg)

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By Dana Hull

June 12, 2018 at 5:52 PM UTC

Updated on

June 13, 2018 at 11:41 AM UTC

This article is for subscribers only.

Elon Musk has finally been forced to rethink his vaulting ambitions for Tesla Inc.

The news Tuesday that Musk will dismiss more than 3,000 employees, or about 9 percent of the company’s workforce, underscored what many on Wall Street have been saying for months: Tesla has reached a pivotal moment. After misjudging how quickly the carmaker would be able to mass-manufacture an electric vehicle for the first time, the chief executive officer is pumping the brakes from years of hiring at breakneck speed.