Tesla Inc. will cut its full-time employee headcount by 7% (about 3150 jobs lost) in order to free up more capital to invest in research for reducing the production costs of electric cars, which is currently not very affordable for the mass market. These layoffs mark the second shedding of workers in a short period of time. In June, Tesla dismissed 9% of its workforce after misjudging how quickly it could ramp up mass-manufacture and supply of its Model 3 — only to go on an aggressive hiring spree shortly after. Tesla’s overarching challenge is making cars, batteries and solar products cost-competitive with its current substitute good, fossil fuels, CEO Elon Musk commented. “The road ahead is very difficult,” he further added as Tesla strives to continuously bring the price of its mid-range cars down to equilibrium price to further heighten the current demand for Tesla cars.