Tesla fires hundreds of employees while Model 3 production experiences delays
Monday, October 16, 2017 at 2:26AM 
Photo: Tesla Motors via european pressphoto agency
Tesla CEO Elon Musk has been quoted before saying the company plans to make 5,000 units of its mass-market Model 3. But early stumbles and issues seem to be bogging the company down, putting into question whether this goal is feasible. On top of this, the automaker also seems to be cleaning its ranks as part of its annual performance review. Tesla dismissed several hundred of employees, including everyone from engineers, salespeople, managers, and down to factory employees. The company won’t give specifics about these dismissals beyond that. According to a statement from the company, “Like all companies, Tesla conducts an annual performance review during which a manager and employee discuss the results that were achieved, as well as how those results were achieved, during the performance period," explained a brand spokesperson. "This includes both constructive feedback and recognition of top performers with additional compensation and equity awards, as well as promotions in many cases. As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures. Tesla is continuing to grow and hire new employees around the world.”
How this’ll affect production of its new vehicle remains to be seen. Tesla began production of the Model 3 in July and was able to build 260 of them in the third quarter. However, this is only 17 percent of the projected 1,500 units produced in the same time period. The company might be reevaluating its processes to see that they can meet the goal it set for itself.
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