Elon Musk emailed Tesla employees Friday with bad news: The company needs to slash about 3,000 jobs—7% of its workforce. Musk wrote he believes a leaner work force will help it sell its vehicles more cheaply as the company ramps up Model 3 production and a key U.S. tax break for electric vehicles dries up. Wall Street was pessimistic: The company’s stock fell 12% Friday. The move was a bit of a Rorschach test, however, for Tesla bulls and bears. An optimistic view of course would be that the move is a necessary gut check, and shouldn’t surprise those that have been following Tesla’s production challenge. Feeling more critical? It’s evidence Tesla’s second-half profits papered over the company’s leadership challenges, and puts Tesla in a similar bucket as old-line automakers like General Motors and Ford that also have cut thousands of jobs recently.