10h28: 18/01/2019 | BusinessTim Pearce | Reporter of energy

Tesla eliminates thousands of people from its workforce as the company strives to maintain profitability and provide cheaper cars to a larger market, CEO Elon Musk told employees Friday. Tesla chief executive Elon Musk announced Friday the cuts, which will account for about 7% of the electric car manufacturer's workforce, in a company-published blog sent to employees. Tesla shares fell 7.6% in pre-market transactions after the announcement, according to Bloomberg. Tesla's low profit margin fell further between the third and fourth quarters of 2018, but it still remains positive, said Musk. (LINKS: This is how Elon Musk landed and Tesla in the kennel of the Fed) "We are facing an extremely difficult challenge: making our cars, batteries and solar products competitive with fossil fuels," said Musk. "Although we have made great progress, our products are still too expensive for most people." "Unfortunately we have no choice but to reduce full-time staff by about 7% (we have increased by 30% last year, which is more than expected, we can support) and retain only the most critical workers and temporary workers, "said Musk. The cuts should come while increasing the production of the Model 3 electric sedan and reducing its price from $ 44,000 to $ 35,000. Tesla employed about 45,000 people by the end of 2018, or about 3,150 jobs, Bloomberg reports.

A Tesla Model 3 car is on display at a media preview at Auto China Auto Show 2018 in Beijing, China on April 25, 2018. REUTERS / Jason LeeA Tesla Model 3 car is on display at a media preview at Auto China Auto Show 2018 in Beijing, China on April 25, 2018. REUTERS / Jason Lee

Under Musk's leadership, Tesla had a tumultuous 2018 year that led Musk to resign as chairman of the company's board of directors. Musk resigned from his position under an agreement with the Securities and Exchange Commission (SEC). The SEC sued Tesla for fraud after Musk announced on Twitter that he had financial backing and that he was considering taking the company in camera. In an agreement with the SEC, Musk neither admitted nor denied these charges and also agreed to pay a $ 20 million fine. The news of the Tesla Cup comes a week after the space exploration company SpaceX, led by Musk as CEO, announced that it would make reductions itself. The president of Musk and the company, Gwynne Shotwell, told SpaceX employees that the company would fire 10% of its approximately 6,400 employees. Follow Tim Pearce on Twitter Content created by The Daily Caller News Foundation is available at no charge to any eligible news publisher that can provide a wide audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.