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Tesla is also going to freeze hiring, according to the report. The company did not immediately respond to a Reuters request for comment.
Shares of Tesla rose 1% to $139.25 in trading before the bell.
The reported move comes at a time when Tesla investors have raised concerns over Chief Executive Elon Musk's distraction with managing Twitter, the social media platform he bought for $44 billion in October.
Moreover, Tesla analysts have also cut their price targets on the stock worried that weakness in demand from China will weigh on the EV maker's deliveries next year.
Musk in June said Tesla would reduce its salaried workforce by roughly 10% over the next three months.
