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Tesla sacks hundreds of workers on Model 3 stall: source

2017-10-17 11:20

Image: AFP / Patricia De Melo Moreira

New York - Tesla Motors, which recently missed its production target on the high-profile "Model 3," has dismissed hundreds of employees following annual performance reviews, a person familiar with the matter said Monday.

A spokesperson for the electric-car maker confirmed the dismissals, but declined to provide the specific number of departures.

'Performance reviews result in departures'

"Like all companies, Tesla conducts an annual performance review during which a manager and employee discuss the results that were achieved," the spokesperson said.

"As with any company, especially one of over 33 000 employees, performance reviews also occasionally result in employee departures. Tesla is continuing to grow and hire new employees around the world."

Headed for SA? What we know about Tesla's new Model 3 sedan

A "vast majority" of the departures are in administrative and sales positions, said a person familiar with the matter.

Tesla, which was co-founded by Elon Musk, announced the first deliveries of the Model 3 cars in July. The Model 3, with a $35 000 list price, is Tesla's first vehicle aimed at the middle market and is key to its growth strategy.

Tesla announced on October 2 that it produced only 260 of the sedans in the third quarter due to "production bottlenecks," missing CEO Elon Musk's target of 1 500 Model 3's delivered by September.

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