Hyperdrive

Tesla Slumps After Cutting 3,000 Jobs as Musk Sees ‘Difficult’ Road Ahead

Shares tumble up to 7.7%; CEO says Tesla cars are too pricey
Electric-car maker says it eked out a profit in fourth quarter

An examination of Tesla’s bonds as the company cuts its full-time workforce. Bloomberg’s Elisabeth Behrmann reports.Source: Bloomberg

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By Anthony Palazzo and Elisabeth Behrmann

January 18, 2019 at 10:17 AM UTC

Updated on

January 18, 2019 at 2:43 PM UTC

This article is for subscribers only.

Elon Musk is cutting Tesla Inc.’s workforce by 7 percent -- or more than 3,000 jobs -- warning that the “road ahead is very difficult” in making electric cars more affordable for the mass market.

Tesla shares fell as much as 7.7 percent shortly after the start of regular trading. Musk wrote in a blog post that the Palo Alto, California-based company managed to eke out a profit in the final three months of 2018, though narrower than the hard-won third-quarter earnings it reported in October.