NEW YORK: Electric carmaker Tesla Motors announced Tuesday it was cutting nine percent of its workforce to enhance profitability but said the move would not affect an ambitious production ramp-up of its Model 3 sedan.
The job cuts are part of a company-wide restructuring to address excess staff in some areas due to the company’s speedy growth, Tesla chief Elon Musk said in an email to employees.
The cuts concern salaried staff but not production workers and will not affect Model 3 output targets, said Musk, who characterized the downsizing as an acknowledgement of the need to focus more on costs.
“Given that Tesla has never made an annual profit in the almost 15 years since we have existed, profit is obviously not what motivates us,” Musk said in the message.
“What drives us is our mission to accelerate the world’s transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable,” Musk added.
“That is a valid and fair criticism of Tesla’s history to date.”
The layoff affects almost 4,000 workers, based on figures supplies by the company. Musk said last month that the company would conduct a “sort of reorganization” but did not discuss specifics.
Musk said Tuesday the company would continue to hire for critical roles and that finding additional production staff remained a priority.
Musk said on Twitter that the decision to cut jobs was “difficult but necessary.”
The Tesla chief has at times clashed with Wall Street analysts over an aggressive cash burn rate that has fed skepticism over whether the company can reach its goals after the company earlier missed several key benchmarks for the Model 3.
Just six weeks ago, Musk was in the doghouse with many Wall Street analysts after he abruptly cut off an earnings conference call because of “dry” and “bonehead” questions that dug into capital spending details.
But others on Wall Street and beyond view the charismatic Tesla chief as a visionary, sometimes comparing him to Apple co-founder Steve Jobs and others who have also disrupted industries.
The company’s stock is up about 15 percent since June 5, when Musk signaled that the company would likely meet a goal of producing 5,000 Model 3 sedans by the end of June.
Shares had also risen Monday after Musk said on Twitter the company’s updated Autopilot software coming in August would enable “full self-driving features.”
Shares of Tesla rose 3.3 percent in afternoon trading to $343.00
Founded in 2003 by a group of engineers drawn to electric cars, Tesla went public in 2010 and began delivering the Model S sedan in 2012.
However, the company’s first two major vehicles both sell for around $75,000 or more, whereas the Model 3 starts at $35,000 and had been billed as the first electric car aimed at the middle market.
Since that time, General Motors has also launched a model for this market, the Chevrolet Bolt.
GM chief Mary Barra announced Tuesday that the company planned to boost production of the Bolt to meet demand and reiterated plans to launch more than 20 new electric vehicles worldwide by 2023.
Tesla to cut 9% of workforce, Model 3 production not affected by layoffs
Tesla to cut 9% of workforce, Model 3 production not affected by layoffs
- The cuts concern salaried staff but not production workers and will not affect Model 3 output targets
- Founded in 2003 by a group of engineers drawn to electric cars, Tesla went public in 2010 and began delivering the Model S sedan in 2012
Saudi residential sales rise in Q3 as Riyadh leads quarterly rebound
RIYADH: Residential sales transactions in Riyadh reached 13,000 in the third quarter of 2025, marking a 19 percent increase compared to the previous three months, a new analysis showed.
In its latest report, the real estate advisory firm Cavendish Maxwell said residential sales values in the capital rose to SR17.6 billion ($4.69 billion) during the July–September period, as Riyadh prepares to deliver 57,000 new housing units in 2026 and 2027.
Strengthening the property sector is a key pillar of Saudi Arabia’s Vision 2030 agenda, as the Kingdom seeks to position itself as a global tourism and business destination by the end of the decade.
Despite the quarterly growth, sales volumes in Riyadh were down 44 percent compared to the third quarter of 2024, largely due to affordability pressures, the report said.
The Kingdom’s Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024.
Sean Heckford, director of Built Asset Consulting at Cavendish Maxwell, said: “Riyadh’s rapid price appreciation in 2024 led to sharp increases in both sales and rental prices, prompting the Government to introduce a five-year rent freeze to address affordability concerns.”
According to the report, residential sales in Dammam reached their highest levels for several years, with 3,000 transactions recorded in the third quarter, up nearly 60 percent year on year and 37 percent compared to the previous quarter. Sales values in the city reached SR3.2 billion.
Jeddah also saw a pickup in quarterly activity, with transactions rising 10 percent to 7,500, while sales values climbed 9 percent quarter on quarter to SR8.7 billion. However, transactions in Jeddah declined 19 percent compared to the same period in 2024.
“In Jeddah, price conditions have stabilized, and affordability pressures have eased slightly. Meanwhile, Dammam, where property is more affordable, is emerging as a new hot spot for property investment, with a year-on-year surge in buying activity from both end-users and investors,” added Heckford.
Sales prices and rental rates
The largest increases in sales prices were recorded in Riyadh, where apartment prices rose 7.5 percent year on year in the third quarter to an average of SR6,160 per sq. meter. Villa prices in the capital climbed 10.1 percent to SR5,500 per sq. meter.
In Jeddah, apartment prices increased 1.6 percent year on year to SR4,360 per sq. meter, while villa prices rose 3.1 percent to SR5,140 per sq. meter. In Dammam, apartment prices climbed 5.8 percent year on year, while villa prices rose 3.2 percent.
Riyadh also recorded the steepest rental increases, with apartment rents up 11.8 percent year on year and villa rents rising 10.7 percent. In Jeddah, apartment rents increased 5.6 percent, while villa rents edged down 2.1 percent. In Dammam, apartment rents rose 4.8 percent and villa rents increased 2.2 percent.
New deliveries
Riyadh, Jeddah and Dammam collectively delivered 13,500 new homes in the first nine months of 2025, with total deliveries expected to reach 22,800 units by the end of the year.
By the end of 2025, Riyadh is expected to have added 16,000 new homes, compared to 5,000 in Jeddah and 1,800 in Dammam. Looking ahead, Riyadh has 57,000 new units in the pipeline for 2026 and 2027, while Jeddah is set to deliver 36,000 units and Dammam 12,000.
Impact of new laws and tax reforms
Cavendish Maxwell said new laws and tax reforms are likely to support real estate demand and development from 2026 onward.
“The new foreign ownership law, which comes into effect in January 2026, is a major step forward for Saudi Arabia’s real estate sector that should further accelerate buyer activity, while the recently introduced White Land Tax incentivises land owners to either sell or develop their plots,” said the report.
The analysis added that Riyadh’s five-year rent freeze, announced in September, is expected to improve affordability but could also reduce landlords’ incentives to invest in maintenance and future supply, potentially creating short-term pressure on new developments.
According to Heckford, Saudi Arabia’s residential market performance in the third quarter reflects a transitional phase marked by strong macroeconomic fundamentals and evolving regulatory measures.
“Despite affordability challenges in Riyadh, demand remains resilient, supported by the new laws and tax systems,” said Heckford.
He added: “Jeddah demonstrates stability with balanced supply and demand dynamics, and Dammam stands out as a growth hotspot driven by affordability and investor interest. Vision 2030 initiatives and infrastructure investments will be pivotal in sustaining momentum and unlocking new investment opportunities across all major cities in Saudi Arabia.”
