Tesla is cutting 9% of its workforce in a company-wide restructuring.
The terminated jobs will be confined to salaried positions and not include any production workers, meaning the company's Model 3 productions targets will apparently go unaffected.
In the note, which he tweeted out after it was leaked to media outlets, Musk said that almost all of the cuts would be salaried positions, and that the production staff is largely unaffected.
Tesla is understood to have had around 37,500 employees at the end of past year, with CNBC reporting it has added 8000 since the start of 2018.
Tesla has failed to ever turn a profit in its almost 15 years of business, and Musk noted this fact in a company-wide email he posted to Twitter.
The company would, he continued, "never achieve" its mission to "accelerate the transition to sustainable, clean energy" unless Tesla is able to "eventually demonstrate that we can be sustainably profitable".
In the email, he said the cuts are aimed at eliminating duplicate roles and he does not expect them to affect the firm's production ability.
Tesla's announcement comes a month after Musk announced a restructuring of Tesla's organizational chart.
In his email to employees, Musk also said the company would stop selling its solar panel units at Home Depot to better focus on sales on its own stores and website.
Tesla shares rose 2.5 percent to $340.34 in afternoon trading, after reaching as high as $354.97 around noon. That means about 3,379 employees are getting a pink slip. Employees working at Home Depot stores will have the option of moving to Tesla locations.
Production of the Model 3 stalled in the fall, prompting shareholders to sue the company.
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". "I'm deeply grateful for your many contributions to our mission".
"We are making this hard decision now so that we never have to do this again", he said.
What do you think the future holds for Tesla?