Tesla fires hundreds of employees over bad performance

Tesla fires hundreds of employees over bad performance

In this case, however, Tesla has taken the unusual step of firing several hundred people based on a company-wide annual performance review.

Tesla confirmed in a statement on Saturday that a number of its 33,000 workers were fired, but did not confirm how many employees were sacked.

As per spokesman of Tesla, like other companies in the market, Tesla also conducts its annual performance review that includes both constructive feedback and recognition of top performers with supplementary reimbursement. The dismissals come after Tesla said it built just 260 Model 3 sedans during the third quarter, less than a fifth of its 1,500-unit forecast.

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Meanwhile, a Tesla representative said the dismissals would not have an effect on Model 3 production and that a "vast majority" of the vacant positions would be filled with new hires.

This news comes as the auto manufacturer hits serious 'production bottlenecks' which has seen just 260 Model 3 cars made since it launched. Elon Musk prefers to work long hours as he serves as CEO of Tesla and SpaceX simultaneously. "We don't know how high up it went", said the former assembly line employee.

The company noted that there are "no fundamental issues with the Model 3 production or supply chain" and said that company officials understand "what needs to be fixed". Tesla dismissed the employees after it bought the company, which manufacturers and installs rooftop solar panels, for about $2 billion in 2016.

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He said that suppliers will be held to high standards and deadlines or otherwise they could be fired - adding that "if you can make a human in 9 months, you can make a tool in 9 months", in reference to the Model 3 production timeline.

Firing hundreds of people during "production hell", a term Musk used during the investor call, may seem at odds with the current urgency at Tesla to ramp up production of the Model 3 in order to satisfy the 400,000+ customers who have placed $1000 deposits on the electric sedan.

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