Musk in the email thanked the employees leaving the company and said the individuals will receive compensation.
Given that Tesla has never made an annual profit in the nearly 15 years since we have existed, profit is obviously not what motivates us.
At the company's annual shareholder meeting earlier this month, Musk said he expected the Palo Alto, California, company to post a quarterly profit during the July-September period. 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.
It's not the first time Tesla has laid off workers.
"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 can eventually demonstrate that we can be sustainably profitable".
Following the announcement, Electrek has now learned of a round of layoffs currently ongoing at Tesla, which could see as much as 9% of the workforce leave the company.
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.
A sign is seen outside Tesla Motors' new showroom in Manhattan's Meatpacking District in New York City, U.S., December 14, 2017.
Up almost 7 percent earlier on Tuesday, shares of the company trimmed gains to stand 3.5 percent higher at $344 by early afternoon.
Consumer Edge Research Analyst James Albertine wrote in a note to investors that he views the moves "as a positive in helping Tesla track toward profitability later this year".
Tesla has promised to hit a 5,000-cars-per-week production target for the Model 3 by the end of this month.
The Model 3 starts at $35,000, but lower-priced configurations are not available yet.