Why will a fast-growing company like Tesla eliminate 7% of its labor force? There’s an official and an unofficial answer. The official answer is to cut production cost and price for its Model 3 Sedan and make it affordable to the masses. That’s why it needs to cut costs, and cut them fast, by laying off part of its workforce. If Tesla cuts prices for its vehicles they would have a harder time entering the market.

Source: Forbes January 20, 2019 15:33 UTC