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Tesla Fires Hundreds Amid Model 3 Production Bottlenecks

Tesla fired hundreds of employees last week following an internal performance review of the company. 

The layoffs are rather unexpected, coming as Tesla attempts to boost production of the Model 3 electric sedan. According to Reuters, the automaker performed a company-wide annual review last week and elected to lay off around 400 employees for performance reasons. One employee told Reuters he was fired despite never having been given a bad performance review, however. The automaker plans to fill the majority of the vacancies with new workers.

Many of the employees let go worked in sales and administration at Tesla. The automaker said the firings did not have a major effect on the 10,000 laborers that currently work at its Fremont, California factory where the Model S, X and 3 are built. Tesla recently postponed the arrival of its electric semi-truck from late October to early November, electing to focus its resources on Model 3 production.

SEE ALSO: Tesla Recalls Model X SUV for Second-Row Seat Issue

Tesla released a report earlier this month saying it had built just 260 Model 3s – well behind the 1,500 it said it wanted to build in the third-quarter of 2017. Company CEO Elon Musk cited production “bottlenecks” as reasoning for the recent delays. The automaker hopes to be producing around 10,000 Model 3s a week by the end of 2018.

[Source: Reuters]

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