Economy

Tesla fires hundreds of staff as Model 3 production lags behind schedule

The electric-car maker Tesla fired hundreds of workers this week after a series of performance reviews conducted during the biggest expansion in the company's history. That's between 1% and 2% of the company's more than 33,000 employees.

"As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures". Former and current employees told the Mercury News that little or no warning preceded the dismissals. State law requires companies to notify employees of layoffs through its WARN notification system. Tesla continues to grow and employ new people from all over world "explained". The company has offered scant detail about the problems its having producing the vehicle, although the previously noted WSJ report suggests that Tesla is having severe manufacturing bottlenecks forcing workers to build parts of the Model 3 by hand.

In September, Tesla announced it was phasing out 63 positions at SolarCity Corp's Roseville, California office, according to Business Insider.

Tesla has fired hundreds of workers across its engineering, management and factory divisions, as delays in the production of its latest Model 3 vehicle look likely to continue. Tesla, who does not use Automobile gallery, makes sales over Internet, has produced 260 vehicles so far.

In July, Musk tweeted a production update for the Model 3, saying the auto had passed all regulatory requirements ahead of schedule.

Musk has told investors the company is focused on Model 3 production and expects to eventually build 10,000 cars a week.

A small number of cables in the second row fold-flat seats in some Model X vehicles, manufactured between October 28, 2016 and August 16, 2017, may need to be adjusted to amend the issue, it said, despite not receiving any reports of accidents or problems relating to the oversight. One of the "bottlenecks" Musk alluded to was a process that involved positioning and welding body panels by hand, rather than by precision robots, according to workers interviewed by the Journal. The company has offered scant detail about the problems it's having producing the vehicle.



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