He even acknowledged the company has never turned a profit in its nearly 15 years of existence.
The cuts come as the company aims to shrink costs and become profitable, Musk said. The areas were to be outfitted during the first half of this year and staffed by Tesla employees to demonstrate that its panels and batteries have mainstream appeal.
Musk said the company would inform those who were affected by the reorganization this week.
In addition to spending more on righting ship with the Model 3 sedan, the company will have to shell out billions of dollars to build new vehicle and battery factories in China and Europe - not to mention on delivering a new crossover, sports auto and semi truck in the coming years.
The electric auto company needs the Model 3, its more affordable option, to succeed.
Shares of heavily shorted companies can at times get pushed higher as traders rush to buy stock to cover their short bets, triggering what is known as a 'short squeeze.' That has not happened so far for Tesla, according to S3 data.
Tesla has been trying to hit a 5,000 per week production target of its Model 3 sedans after facing initial production hiccups.
Tesla told CBC News that it had over 42,000 employees around the world.
Shareholders reacted positively to the announcement, and Tesla rose more than 3 percent by the end of Tuesday, with a stock price of $342.62.
Musk ended his note to workers this week by underscoring the societal value of Tesla's hard work. In a Securities and Exchange Commission report filed at the end of December 2017, the company said it had 37,543 full-time employees, meaning at least 3,000 will be impacted.
As described previously, we are conducting a comprehensive organizational restructuring across our whole company.
In an email to employees, the executive noted that Tesla has rapidly grown over the past several years and some job positions are either duplicate or "difficult to justify" today.
Elon Musk is cutting 9 per cent of the workforce at Tesla Inc. For almost all of its history, Tesla has put up losses while investing heavily in technology, manufacturing plants and an extensive car-charging network.
This week, we are informing those whose roles are impacted by this action. Elon Musk went so far as to say he was sleeping on the factory floor while trying to work on the problems himself. As you know, we are also continuing to flatten our management structure to help us communicate better, eliminate bureaucracy and move faster. The company will seek to re-employ most Tesla employees at Home Depot stores at its own locations. After misjudging how quickly the auto maker would be able to mass-manufacture an electric vehicle for the first time, the CEO is pumping the brakes from years of hiring at breakneck speed. I'm deeply grateful for your many contributions to our mission.
In-N-Out Burger locations in Texas will not reopen Tuesday despite earlier reports media representatives offered to KENS 5. In-N-Out Burger executive vice president Bob Lang Jr. announced the closures were not due to a food safety concern.
The United Nations is warning of escalated fighting in the Syrian province of Idlib, where 2.5 million civilians are trapped. The White Helmets say at least 16 more people were killed by Syrian government airstrikes over the weekend.
Résident à Mollet, près du circuit barcelonais, Andreas avait débuté la moto à 3 ans avant de débuter la compétition à 7 ans. Un autre concurrent ne parvenait pas à l'éviter et le percutait de plein fouet.
Le précédent plus bas pour un jour de grève en semaine avait été atteint le 28 mai, avec 13,97 % de grévistes. - trains de la longue distance: 4 TGV sur 5 et 1 Intercités sur 2 , et 7 trains internationaux sur 10.
Defense Secretary Jim Mattis on Monday acknowledged the United States continues to provide support to the Saudi-led coalition. The United Nations and other aid groups already had pulled their global staff from Hodeidah before the rumoured assault.
In the co-main event, Jose Pedraza defeated Antonio Moran by unanimous decision for a regional lightweight title. The courageous Horn was all class in defeat but could not match Crawford for speed or punch accuracy.
During these days, Jolie is allowed to call the kids only one time per day at a time agreed on in advance by both parents. Eldest child Maddox however will be able to choose how much time he wants with each parent because of his age.
Trump went on to say that the USA gets "unfairly clobbered" on trade despite "protecting Europe at great financial loss". German Chancellor Angela Merkel described his change of heart as "sobering and a little depressing".
Mais il le sera nettement moins que lors de la précédente journée de mobilisation spéciale, la "Journée sans cheminots " le 14 mai, qui avait vu rebondir la participation jusqu'à frôler les 28% de grévistes.
Prince Harry gives Meghan Markle some royal pointers
A fan account for Harry and Meghan caught the pre-curtsy confirmation. " She really wants his views", said a source. In fact, it's rumored that Prince Harry might have a little something to do with her style choices.
Mbappe says injury not serious ahead of Socceroos clash
The 19-year-old star enjoyed an excellent debut season at PSG, scoring 21 times and setting up 16 in 46 games in all competitions. The 19-year-old was pictured laying on the floor holding his left ankle before then being helped up by staff.