Tesla’s long-term growth story is running on a low battery.

The electric auto maker’s shares fell after it announced Friday that it plans to lay off 7% of its workforce—its second round of job cuts since June. Earlier this month, Tesla cut prices on its vehicles to compensate for a reduction in U.S. tax incentives for buyers, another sign of slowing growth.

One problem the company faces is that the market for luxury cars is limited. “Our products are still too expensive for most people,” Chief Executive Elon Musk said in an email to employees posted on the company’s website.

He added that higher volume and manufacturing improvements are needed to be able to produce the company’s $35,000 version of its Model 3 Sedan and “still be a viable company.”

Nearly three years after Tesla began taking deposits for such a vehicle, an offering at that price point is nowhere in sight.