Summary: Ahead of X-Mas festivity, Tesla has fired between 400 to 700 employees following a series of performance evaluations after the company significantly boosted its workforce with the purchase of solar panel maker SolarCity.
"As one of companies with more than 33 thousand employees, performance assessments often result in separation from company".
The company said this week's dismissals were the result of a company-wide annual review, and insisted they were not layoffs.
In the third quarter of the current financial year, the company delivered 220 Model 3 sedans, while 260 were produced.
Including other models, Tesla expects to make about 100,000 cars this year.
Workers in sales manufacturing and administrative roles were fired after the annual reviews were gone through.
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According to the Mercury News, this week's dismissals have not been reported to the state Employment Development Department, a spokeswoman said. Although some employees told the paper that firings hurt morale.
CEO Elon Musk said factory output will increase production to a half-million electric vehicles in 2018.
Meanwhile, Tesla is under pressure to deliver its Model 3 to customers that are on the waiting list. Little did many the employees know that hell would come in the form of a pink slip.
While Tesla did not provide statistics, it suggested that its attrition rate this year is roughly similar to last year's rate.
In an absurd demonstration of Musk's weird management style, the company said the mass terminations have "generally boosted worker morale", as high-performing employees have been rewarded.it was unclear what the 700 layoffs, pardon, exit events did to worker morale. Yet, in a report from the Wall Street Journal, it is said that some Model 3 parts are being made by hand by workers at the Fremont facility, thanks to an assembly line that is not yet fully operational.
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".