Electric car giant Tesla Inc (NASDAQ:TSLA) has sacked hundreds of workers after completing its annual performance reviews even though it is looking to ramp up production of its new Model 3 sedan over the coming months.
The California-based group, which is owned by eccentric billionaire Elon Musk, confirmed the cuts in a statement but would not disclose exactly how many of its 33,000 workers had been given the boot.
Local media reports suggested that somewhere between 400 and 700 employees had lost their jobs.
Admin workers and sales reps were among those to fall victims to the annual clear out, as well as some involved in manufacturing operations.
There were others though who received bonuses and promotions following their reviews though, Tesla added.
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.
More than 450,000 people are on the Model 3 waiting list and Tesla is under pressure to deliver having fallen behind its own production targets and making just 260 cars last quarter.
There were reports today (Monday), people on the waiting list were selling their US$1,000 reservations for as much as US$4,000 as new buyers looked for ways to jump the queue.
If you were to make a US$1,000 reservation today, Tesla reckons it would take about 18 months before you got to drive your new car.
Including other cars – such as the Model S and Model X – Musk expects the company to produce 10,000 cars this year.
Shares lost 1.61% in New York to US$349.13 each.