Over 3,000 jobs could be about to go at Tesla, Stuff.co.nz writes.

The company announced Friday that it is reducing its workforce by 7 percent, a cost-cutting measure designed to help the company make its Model 3 sedan more accessible in the mass market.

In a memo to employees, chief executive Elon Musk said the layoffs are a way to boost margins as the company plans to ramp up production on the Model 3 while also bringing down the price.

Tesla employs more than 45,000 people, indicating it will cut about 3000. Mr. Musk said 2018 was Tesla's "most successful" yet, in which it delivered almost as many cars as it had in all the previous years of its existence combined, Radionz.co.nz reports.

In his email, Mr. Musk noted the firm was cutting the jobs after expanding its headcount by almost a third in 2018.

"Tesla has only been producing cars for about a decade and we're up against massive, entrenched competitors," he said.

"The net effect is that Tesla must work much harder than other manufacturers to survive while building affordable, sustainable products."