A report that first came on Mercury News says that Tesla has dismissed thousands of employees. There’s been no word on exactly how many employees were dismissed but Mercury News puts it at 400-700. Tesla put out a word that the dismissals are mostly from sales and administrative positions. Manufacturing remains unaffected. Workers are visibly miffed since the dismissal came without any prior notice. Some employees said that they never received any poor performance reports throughout the year.

Who is being fired?

Among those under the hammer, are workers at its manufacturing facility in California. Tesla is of the opinion that this will help with the production problems that have plagued Tesla 3’s production.

Issues with production scrambled delivery dates throughout the company’s history. Major projects were delayed due to one or the other problem. Tesla is however not making any big deal about the whole thing. A company spokesperson said,“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,”

Tesla has over 30,000 employees

Tesla being a 33,000 member strong company, firing some under-performing ones seems like a routine process. The company is clear on one thing though. These are clearly dismissals and not layoffs. The company isn’t downsizing and will soon be hiring to fill up the positions that have now become vacant. The company said that the employees were dismissed after the yearly performance report showed that they were lagging behind among their peers.

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Company’s stock has only gone up

The company’s stock has witnessed a dream run so far, beating the likes of GM. A few stock market experts are of the opinion that the stock value is inflated due to high expectations associated with Elon Musk as a brand. Tesla is trying to speed up production and put out more cars. The layoff seems to be ill-timed. Quarter 3 should have had seen the production of at least 1630 units of Model 3 but instead, the company produced just 260 and delivered 40 less. Model 3 has created much interest among people with registrations reaching nearly 2000 per day for some time during the year according to a TechCrunch report. The interest hasn’t waned even now. However, the company hasn’t been able to deliver any model on schedule so far. We have to wait and see how the dismissals work for Tesla’s future.