Shares of electric-car company Tesla (NASDAQ: TSLA) slid on Friday, falling 8.8% as of 9:54 am.m. EST.
The stock's decline comes after CEO Elon Musk sent a letter to employees announcing 7% workforce reduction as part of an effort to reduce costs and remain profitable.
For its recently ended fourth quarter, Tesla estimated in the letter that it will report a smaller GAAP profit than in Q3. This will be lower than Tesla's third-quarter GAAP profit of $ 312 million, or $ 1.75 per share.
For the first quarter, a profit is possible but less likely. "This quarter, as with Q3, shipment of higher priced Model 3 variants (this time to Europe and Asia) will hopefully allow us, with great difficulty, effort, and some luck, to target a tiny profit," Musk said. ] fool.insertScript ('facebook-jssdk', '//connect.facebook.net/en_US/sdk.js#xfbml=1&version=v2.3', true);
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