Last week, a significant number of employees were dismissed by Tesla Motors following the completion of its annual performance review in spite of the fact that efforts are being made by the automobile manufacturer to enhance the production so as to fulfill the huge demand for its brand new Model 3 sedan. Although the exact number of firings is not yet disclosed by Tesla, Reuters claimed a former staff stating that the number was approximately 400 which included associates, group leaders, as well as managers.
The San Jose Mercury News, on the other hand, confirms the number to be anything between 400 and 700. Tesla is pressurized to provide its Model 3 to over 450,000 consumers. However, the firm is nowhere near its targets of production making only 260 of the automobiles in the final quarter.
The company stated earlier in the month that “production bottlenecks” caused Tesla to fall behind its planned ramp-up for the new Model 3 mass-market sedan.
The company expects to produce around 100,000 vehicles along with other models this year. Chief executive Elon Musk aims to boost production five times next year, a target that ought to be fulfilled so as to support the firm’s market value of $59bn – which is greater than that of Ford.
As opposed to Ford, no annual profit has been published by Tesla till now. In spite of the mass dismissals, Tesla is on the lookout for employing hundreds of more people.