Tesla fires hundreds as Model 3 electric car production drags
Tesla has reportedly fired hundreds of employees amid signs that the company is off to a slow start in manufacturing its crucial Model 3 electric car.
The Palo Alto, Calif.-based automaker and tech company dismissed several hundred workers, according to multiple reports, including an initial story by the Mercury News. Reuters also reported the news.
The dismissals occurred after what Tesla described as “an annual performance review” of its more than 33,000 employees. The company did not provide specifics.
But the firings reportedly included engineers, managers, salespeople and factory employees.
The move comes as Tesla is aiming to rapidly expand production of its new mass-market Model 3. CEO Elon Musk had said the company would be making 5,000 cars per week by the end of the year, but that goal appears to be in jeopardy amid early stumbles.
It was not clear whether any of the firings were connected to the manufacturing problems.
Musk acknowledged on Oct. 6 that the company was facing “bottlenecks” in Model 3 production. He said Tesla was “diverting resources” to clear up the Model 3 production challenges, which was one factor in the company’s decision to delay its reveal of an electric semi-truck by about three weeks.
The company said in a Securities and Exchange Commission filing on Oct. 2 that “a handful” of its “manufacturing subsystems” have “taken longer to activate than expected.”
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