Producer of electric cars Tesla Inc cuts few thousand jobs to reduce costs and improve profitability, Reuters informs. This step will not influence Model 3 production plans that are of top priority for the company.

As Tesla’s leaders say, cuts will involve only managerial personnel and will help optimize management system of the company.

Tesla is trying to reach its goal for manufacturing 5000 Model 3 sedans a week. Last week, Elon Musk said that this goal will be reached by the end of June.

Shares of the company rose by 7%.

Tesla continues making massive investment into new lines for assembling new Model Y crossover as well as in its Gigafactory.

Free cash flow that is a key parameter of financial health widened to minus $1 billion in the first quarter from minus $277 in the fourth quarter of last year.

Experts cannot agree on opinion whether Tesla is going to attract additional capital by the end of this year already.

Shares of Tesla lost 35% in the beginning of April compared to the peak value in September, however, signs that the company is close to reaching its production goals in regards to Model 3 helped to recover almost all losses.