Business magnate, investor, engineer, eccentric billionaire, Tesla (TSLA) co-founder and CEO, Elon Musk, purchased upwards of 70,000 shares of the company, simultaneous with his announcement of layoffs of nearly 10% of employees.
He emphasised on the fact that Tesla has never made an annual profit. The stock had foundered over the past year amid setbacks in meeting production targets for the Model 3, Tesla's first affordable electric auto with a starting price of $35,000.
In the company letter, Musk said Tesla would end its residential sales agreement with Home Depot and focus on selling solar power in Tesla stores and online. 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 wouldn't be the first time Musk has undertaken such a gambit. Tesla still has a significant need for production workers as it tries to reach Model 3 manufacturing targets, he wrote in the email.
Also of note is that Musk has a somewhat unconventional pay package at Tesla in which he'll be granted additional stock options as the company hits milestones. He said most Tesla employees working at Home Depot will be offered a chance to move to Tesla retail locations.
Tesla's profitability has been based on the firm hitting a 5,000 per week production target of its Model 3 sedans after facing initial production hiccups.
Efraim Levy, analyst at CFRA Research says that profitability is just around the corner but it may not last long.
The Model 3 starts at $35,000, but lower-priced configurations are not available yet.
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