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Tesla fires 'hundreds of workers' following performance reviews

Despite the mass firings, Tesla is still believed to be looking to hire hundreds more workers as it starts to ramp-up production ahead of the highly-anticipated Model 3's mass roll-out.

Workers who spoke to The Mercury News estimated that 400 to 700 employees were fired, although Tesla would not give a number.

"As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures", the company said.

If a Tesla driver's insurance goes up, "there is a simple solution", Musk said.

Tesla built about 25,000 vehicles in the three months that ended September 30 but only 260 of those were Model 3s - considerably fewer than the 1,500 it had projected.

This news comes as the auto manufacturer hits serious 'production bottlenecks' which has seen just 260 Model 3 cars made since it launched.




The spokesman said most of the dismissals were administrative and sales positions, and outside of manufacturing. Although some employees told the paper that firings hurt morale.

Juan Maldonado, a production worker, told the paper that he was sacked last week after close to four years at Tesla.

Claiming it was weeding out underperforming employees, Tesla dismissed hundreds of employees at its Palo Alto, California, headquarters campus and its Fremont assembly facility, according to multiple reports.

That has Wall Street a bit anxious about the company's Model 3 production ramp, which has already encountered issues.

Musk also tried to shed some light on the Model 3 production by sharing some images of the production line earlier this month he reiterated that they are still in "production hell", but he is nonetheless still confident that the production rate will significantly increase throughout the current quarter and Tesla didn't update its customer delivery timeline. "A major change in staff - whether dismissal or layoff - is an indication that there is an upper level movement to put the train back on the tracks".

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