Instead, he said that the cuts were made to job functions that, "are hard to justify today".
The cuts come as the company aims to shrink costs and become profitable, Musk said.
"Profit is obviously not what motivates us", Musk wrote.
Afterward an emotional Musk appeared to signal brighter days ahead for the Tesla when he predicted the company would begin pushing out 5,000 Model 3s per week by the end of June.
The email then shifts in tone and notes that the cuts will not impact the company's delayed production schedule for its latest vehicle model: "These cuts were nearly entirely made form our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months". It's not clear which departments will be most affected.
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Tesla is cutting 9% of its workers as part of a reorganization created to reduce costs and help the electric automaker become profitable, according to an email CEO Elon Musk sent to employees Tuesday and obtained by Fortune. The firm has a sector weight rating and a $300 "fair value" price target on Tesla shares, which were up about 4% in pre-market trade Tuesday.
"These cuts were entirely from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months". Moreover, he said that this round of layoffs is necessary so that "we never have to do this again".
Tesla also said it was not renewing its residential sales agreement with retailer Home Depot in order to focus on selling solar power in Tesla stores and online.
Tesla employed more than 37,000 people at the end of past year.
To those who are departing, thank you for everything you've done for Tesla and we wish you well in your future opportunities. The company let go of 400 to 700 workers last fall after completing annual performance reviews, and it laid off a small number of workers back in 2008.