Electrek on Tuesday also reported the company's layoffs and said the cuts began on Monday. As part of the reorg, we are flattening the management structure to improve communication, combining functions where sensible and trimming activities that are not vital to the success of our mission.
The cuts are nearly entirely made from salaried employees.
"As part of this effort, and the need to reduce costs and become profitable, we have made the hard decision to let go of approximately 9 percent of our colleagues across the company", the email read.
Tesla employed more than 37,000 people at the end of previous year.
The cuts will not affect people working on production lines such as its Model 3 vehicle, which has struggled to scale up since deliveries began a year ago.
Mr Musk said the job cuts were a "difficult decision". "What drives us is our mission to accelerate the world's transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable".
Tesla Inc. has followed through on a restructuring announced last month by cutting about 9 percent of its workforce, as Chief Executive Officer Elon Musk seeks a first annual profit for the electric-car maker. We are a small company in one of the toughest and most competitive industries on Earth, where just staying alive, let alone growing, is a form of victory (Tesla and Ford remain the only American vehicle companies who haven't gone bankrupt).