FIRST AIRED: June 12, 2018

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

×

Transcript

00:00:00
>> Tesla laying off 9% of its employees, even as it faces challenges to wrap up production of the Model 3. That news coming from CEO Elon Musk Tuesday, who said the electric car company is trying to slash costs. And Musk, a heavy Twitter users, made the news public by posting pictures of an email he said had been leaked to the media.
00:00:22
Musk assuring investors that the cuts are entirely from his quote, salaried population and no production associates were included, and hence, wouldn't impact the Model 3 production targets in the coming months. And the job cuts come as Tesla faces challenges from some workers trying to form a union. Says Reuters correspondent Salvador Rodriguez.
00:00:42
>> This week it is dealing with a case before the National Labors Relations Board where it has been accused by several workers of violating worker rights. This dispute stems back to complaints from company workers who said that Tesla forced them to sign overly broad agreements that prevented them from publicly discussing the work that they did.
00:01:04
And it also stems from how the company has handled efforts by workers to try and unionize. On Monday, a Tesla factory worker testified that the company had security guards tell him to leave the premises when he was trying to hand out fliers promoting a unionizing campaign, which would be in violation of certain worker rights laws.
00:01:27
>> At the start of April the company's shares had fallen by around 35% from their peak last September, but signs that it's on course to meet an output target of 5,000 Model 3 cars per week have helped shares bounce back. The stock rose as much as 7% on Tuesday following a research report estimating higher Model 3 deliveries for the second quarter, but gave up some of those gains after Musk's announcement.
00:01:51
Tesla said it began notifying impacted workers on Tuesday, and would continue to do so throughout the week. And it would reduce overall employment back to around 37,000, roughly in line with numbers at the end of last year.