Introduction Tesla, a small but rapidly growing manufacturer of electric vehicles, has a history of significant financial losses. This year, however, has become crucial for the company as it has managed to enhance its profit largely. This report provides information about recent Tesla’s job cuts and their consequences. It reflects on Tesla’s position in the market of electric vehicles and presents the analysis of the company’s decision to reduce its workforce. The report concludes that the firm’s action was successful and contributed to significant profit maximization. Tesla’s Job Cuts Tesla made a news headline last year for cutting its workforce to maximize profit. The report by Boudette states that the company’s chief executive, Elon Musk, reduced the number of employees by 3,500 as a part of his restructuring strategy. Musk noted that he decided to take such an action to demonstrate that Tesla can be sustainably profitable and adhere to its mission to promote the world’s transition to clean energy (Boudette). Staffing cuts were a part of the company’s effort to transform from a niche car manufacturer to a mainstream producer. Musk’s decision was considered newsworthy as the company was known for the high levels of losses while investing billions of dollars in creating its products (Boudette). The authorities of the organization reported that the problem might be associated with the excessive use of automated machinery and robots for tasks that workers could perform more effectively. Thus, it was evident that Tesla needed a strategy that will allow for profit maximization. According to Musk’s forecast, the decision to reduce the workforce would result in higher profit. Independent analysts agreed that such an action would allow for a decrease in costs and an increase in expenses, leading to profit maximization (Boudette). Tesla’s Position in the Market Tesla is the company that produces all-electric cars and clean energy storage products. The organization also develops energy solutions for homeowners and businesses; they include Solar Roof, Powerwall, and Powerpack (“About Tesla”). Tesla aims to make its factories the safest in the world by providing on-the-job training for its employees, as well as multi-day training programs. The organization operates in the price-insensitive segment of the electric car market, establishing high prices for its products and targeting the economically advantaged population. It is evident that Tesla strives to improve the quality of its performance on all levels, from management to manufacturing. Market analysis shows that the organization can be considered a highly competitive company in its segment. The reason for it is that few companies produce electric vehicles and they are not competitive in the market, while Tesla is one of the most valuable car manufacturers in the US (DeBorg). Moreover, currently, many automakers see electric vehicles as a science project rather than a profitable investment. The majority of customers prefers gasoline and diesel cars due to their lower cost and the accessibility of petroleum. Indeed, in some countries, owning an all-electric vehicle may be challenging due to the lack of charging options. However, Tesla has a tar