Hundreds get pink slips at Tesla after appraisals

Gladys Abbott
October 17, 2017

Tesla Inc. 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. The result of a companywide annual review, Tesla said.

A Tesla spokesperson told Business Insider on Friday evening that it would be firing the employees after routine performance reviews. Date of entry: 15.10.2017 14:59 electric vehicle giant Tesla has put an end to work of almost 400 employees on grounds that ir performance is low.

According to the Mercury News, this week's dismissals have not been reported to the state Employment Development Department, a spokeswoman said.

The automaker produced about 25,000 vehicles in the third quarter, but only 260 were Model 3s, much lower than the 1,500 it expected to produce.

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The automaker has attributed the low production rate of the new auto to unexpected bottlenecks in its manufacturing system.

Big Picture: Reports of layoffs at Tesla, plus an analyst's projection steeper losses this year, sent the company's shares down a bit on Monday.

In September, Tesla announced it was cutting 63 positions at SolarCity Corp.'s Roseville, California office; the staff was dismissed after Tesla bought the company, which manufactures and installs rooftop solar panels, for about $2 billion in 2016. That production surrounds the Model 3, the company's first mass-market vehicle, for which Musk has set an aggressive production schedule - one the company has not kept pace with. Tesla executives reportedly told Rusch that all of the equipment for the Model 3 production line has now been installed and cars are moving through the line. "We don't know how high up it went", said a former employee, who worked on an assembly unit and didn't want to be recognized.

"Model 3 production was less than anticipated due to production bottlenecks", Tesla wrote in an October 2 investor letter.

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