Tesla plans 7 percent staff cut\, says road ahead very difficult

Electric car and solar panel maker Tesla says it plans to cut its staff by about 7 percent. In an email to employees released early Friday it said the "road ahead is very difficult."

The memo posted on the company's website said Tesla Inc. hopes to post a "tiny profit" in the current quarter. It said Tesla increased its staff by 30 percent last year but cannot support that size of staff.

Tesla's shares tumbled earlier this month after it cut vehicle prices by $2,000 and announced fourth-quarter sales figures that fell short of Wall Street estimates.