Elon Musk, the billionaire founder of Tesla, says he’s going to let 7 percent of the electric-car company’s employees go. In a letter to employees, Musk said preliminary fourth-quarter results show earnings will fall from the previous quarter, and added: “As we all experienced first-hand, last year was the most challenging in Tesla’s history.” Despite cutting thousands of jobs, Musk said he wants to increase production of its Model 3 sedan. “Tesla will need to make these cuts while increasing the Model 3 production rate and making many manufacturing engineering improvements in the coming months,” he said, adding: “There isn’t any other way.” Earlier this month, Tesla cut U.S. prices for all of its vehicles.