Tesla to cut 1,000 jobs, raise prices on top-of-the-line Model 3 sedan

Tesla is considering axing 1,200 jobs in the United States, including its production facilities, amid a sharp decline in sales of the $35,000 car, according to a report by Bloomberg.

The automaker said it will cut the number of employees who make the Model 3, which comes with a range of three-month options, by around 100, as it moves to lower costs.

Tesla’s Model S sedan, which has a range up to 50,000 miles, also is facing a steep decline in demand.

The Model S, which retails for $69,900, has been the best-selling car in the US since its launch last year.

The company has announced plans to cut 5,000 to 10,000 positions by the end of the year.

“Tesla is looking at its production footprint and the number and type of employees that are in place to support our business and continue to drive innovation,” the company said in a statement.

Tesla’s shares are down nearly 40% since the beginning of the month after the company reported a fourth-quarter loss of $2.4 billion.