Telsa Motors announced that they had fired hundreds of workers last week. The electric-car maker resulted to this action following performance reviews. This performance review was geared towards the biggest expansion by the car maker since its establishment. However, the company confirmed that the workers who had been fired were fired for genuine reasons. The move comes as the company gears in increasing its production. The company also announced that they would be embarking on the mass production of a car model known as Model 3 sedan. Tesla has come under criticism in the past few months for the way that it has handled the production of the new model. Some critics say that the company should speed its pace. At the moment, the new model has managed to attract thousands of deposits from around the world. By the end of September, Tesla had produced approximately 25,000 cars in three months. The company confirmed that only 260 cars of the 25,000 were Model 3s. Critics say that the company had projected 1,500 cars of this model by the end of three months. However, Tesla has said that the low production rate is due to unexpected bottlenecks that attacked its manufacturing system.
Aggressive targets have been set by Tesla’s chief executive officer Elon Musk. He projects that the plant located in Fremont, California should increase its production to 500,000 from 100,000. The firings may also explain why Tesla has produced fewer cars than planned. This is an indication that personnel problems are part of the bigger challenge. These firings were brought to light by a San Jose, California newspaper known as the Mercury News. The company issued a statement saying that it conducts performance reviews every year. At the same time, the company said that these reviews determine a basis for bonuses, promotions as well as dismissals. The company said that it currently employs 33,000 people. The statement further confirmed that it would continue with its growth as it continues to hire new employees. Despite confirming the dismissals, the company did not confirm the number of people who will be affected. According to experts, the new Model 3 is considered as a crucial turning point for Tesla. At the moment, Tesla has built a market for its two first models that include Model X sports utility as well as Model S luxury sedan. The new model will help the company increase its sales. The price of the new model is $35,000.