Tesla will lose as many as 7,000 engineering jobs in California if it shuts down production, according to an estimate released on Thursday.
The California Department of Industrial Relations said that in 2018, Tesla lost around $3bn in annual sales and $5.5bn in the last three months of fiscal 2019, which are both the highest in the United States.
The agency said that the company will be able to make up for the loss by raising wages and recruiting staff, but the jobs will disappear.
“We estimate that if Tesla shuts down its operations, the number of workers employed by the company is estimated to be around 5,000,” the agency said in a statement.
“The jobs lost will be in areas such as engineering, plant and tooling, engineering design, manufacturing, customer service and financial support.”
Tesla is planning to resume production in early 2019, but it will likely not be as large as it was before.
It said it was planning to ramp up production by mid-2020.
The automaker said in November that it would start production of the Model X in 2018 but it would likely be smaller than the Model S and Model X.
The Model 3, which is due to go on sale in 2019, is expected to be the most powerful electric vehicle ever produced.