Skip to main content

Tesla just fired hundreds of employees due to ‘performance’ issues

That Tesla is seriously behind schedule when it comes to its vehicle production is no secret. Now, it would appear that Tesla’s workforce is really feeling the pressure of these delays. As originally reported by The Mercury News, the carmaker has fired “hundreds” of employees. Folks including associates, team leaders, and supervisors were affected by the decision.

According to an emailed statement from Tesla, the firings were part of an annual company-wide review.

Recommended Videos

“Like all companies, Tesla conducts an annual performance review during which a manager and employee discuss the results that were achieved, as well as how those results were achieved, during the performance period,” a Tesla spokesperson noted to TechCrunch. “This includes both constructive feedback and recognition of top performers with additional compensation and equity awards, as well as promotions in many cases. 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.”

While the company did not specify how many people were ultimately given the boot, a former employee told Reuters, “It’s about 400 people ranging from associates to team leaders to supervisors. We don’t know how high up it went.” The source also noted that despite Tesla’s claim that the dismissals were the result of job performance, he had never received a bad review.

We might speculate that part of the rationale behind the widespread discharges was the “production bottleneck” that resulted in Tesla being far behind its targets for Model 3 production. Just 260 of these cars were produced during the third quarter of 2017, which is problematic given that Elon Musk had projected being able to make 20,000 Model 3’s a month by this December. And while there’s a very long waiting list for the highly anticipated vehicle, just 220 were shipped in the last few months, which has made for some pretty antsy buyers.

In any case, Tesla still seems very bullish about its future, as do investors. The company is set to report earnings in the next few weeks, and its stock price has continued to climb in spite of its numerous production setbacks.

Lulu Chang
Fascinated by the effects of technology on human interaction, Lulu believes that if her parents can use your new app…
Elon Musk issues stark ultimatum to Tesla workers
Elon Musk stands looking to his right.

Tesla chief Elon Musk has told his workers to return to the office or leave the company, according to a memo sent to staff this week.

Some Tesla office employees have been working at home during the pandemic, but Musk now wants them to get out of the house and restart the commute.

Read more
Tesla recalls 130,000 U.S. vehicles over touchscreen safety issue
tesla wants youtube on touchscreens touchscreen

Tesla is recalling 129,960 of its electric cars in the U.S. over an issue with the touchscreen that could result in the device overheating or losing its image.

This is considered a safety issue as the display provides a feed from the rearview camera, as well as settings linked to the vehicle’s windshield defrosters. It also shows if the vehicle is in drive, neutral, or reverse. Tesla said it isn't aware of any crashes, injuries, or deaths linked to the issue.

Read more
Tesla recalls nearly a half a million vehicles over safety issues
The front of a Tesla Model 3.

Tesla is recalling nearly half a million Model 3 and Model S vehicles in the U.S. over safety issues related to the rearview camera and the trunk.

Specifically, 356,309 Tesla Model 3 electric cars (model years 2017 through 2020/production dates July 15, 2017 through September 30, 2020) have been recalled over a problem with the trunk harness coaxial cable that could wear away and cut the feed from the rearview camera to the center display.

Read more