Tesla fires hundreds on Model 3 stall

Bad news for Mustang Sally

Bad news for Mustang Sally

Tesla Motors fired hundreds of workers after completing its annual performance reviews, even though the electric automaker is trying to ramp up production to meet the demand for its new Model 3 sedan.

Although Tesla confirmed the dismissals, it did not reveal the exact number.

In a statement emailed to The Washington Post, the company said a similar number of "employee departures" occurred previous year.

A Tesla statement to Mercury News said, "As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures". Obviously firing hundreds of workers will only increase this bottleneck, and if Tesla stock is going to track the Model 3, then things suddenly look worse for the buy-side.

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While the company said this week's dismissals were the result of a company-wide annual review, claiming some workers received promotions and bonuses, and expects to hire for the "vast majority" of new vacancies, insisting the mass terminations were not layoffs, some critics have noted that these are layoffs "plain and simple" as a company does not fire 700 people at the same time in the middle of the year due to "performance" issues.

Musk's original goal was for Tesla to produce 1,500 Model 3s in the third quarter, a sizable jump en route to increasing production to 20,000 vehicles per month by the end of the year and 50,000 a month by the end of next year. He worked at Tesla for almost four years, and said he heard about 60 other workers in his section of the factory were dismissed.

This news comes as the vehicle manufacturer hits serious 'production bottlenecks' which has seen just 260 Model 3 cars made since it launched. The first ever mass-marketed vehicle from Tesla is being restricted by "production bottlenecks", according to CEO Elon Musk. It had hoped to be producing 1,500 a month by September and is well behind that target.

The Californian auto manufacturer had estimated that it would be building around 1,500 versions of the EV per week. The workers reportedly felt like the automaker targeted the former SolarCity division and the Model S and Model X segments, which would make sense if the company is truly concerned about ramping Model 3 production.

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