Tesla cancels solar partnership with Home Depot and lays off 9% of employees in ‘reorg’

June 14, 2018

Back in February, we wrote about Tesla’s new partnership with Home Depot to sell “budget-friendly” solar products.

But yesterday, in a company wide email, Elon Musk shared some dim news: Just 4 months after the announcement, the company is pulling the plug on the partnership to reportedly “focus [their] efforts on selling solar power in Tesla stores and online.” 

But wait, there’s more…

Arguably the biggest bombshell was the “reorganization,” including cutting 9% of employees (3.5k people) as the company pinches pennies, while boosting Model 3 output.

In the memo, Musk said the job cuts are mostly directed at salaried staff and won’t affect production workers assembling the company’s vehicles.

The chase for 5k

Musk is in focus-mode trying to hit Tesla’s production goal of 5k Model 3 sedans a week by the end of June (and help raise his performance-contingent salary from $0 to, well, a fortune).

According to The Wall Street Journal, Tesla investors were on board, sending the company’s shares up more than 3% — a stock that has fallen nearly 9% over the past 12 months amid their production struggles.

As for the Depot deal, a spokesperson said the company plans to continue to offer Tesla’s products in its stores through the end of 2018.

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