Electric vehicle maker Tesla fired hundreds of employees this week following a performance review, according to reports.
Tesla has not confirmed the number of dismissals, but Reuters reported a former employee said the number was around 400 and included associates, team leaders and supervisors, while the San Jose Mercury News put the number at between 400 and 700, citing former workers.
A Tesla spokesperson confirmed the dismissals were the result of a company-wide annual performance review.
“As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures. Tesla is continuing to grow and hire new employees around the world," the spokesperson said.
The California-based carmaker has built fewer of its Model 3 sedans than expected this year due to "production bottlenecks".
The ramp-up of the Model 3 is a huge move for Tesla as it represents the company's first foray into the mass market with a fully electric vehicle.
In August, the company noted an "overwhelming" response to its new design as it revealed an average of more than 1,800 daily reservations for the Model 3.
However, in the third quarter, Tesla delivered only 220 units and produced 260. It had aimed to build 1,500.