Despite the mass firings, Tesla is still looking to hire hundreds of workers.
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.
If a Tesla driver's insurance goes up, "there is a simple solution", Musk said.
The automaker produced about 25,000 vehicles in the third quarter, but only 260 were Model 3s, much lower than the 1,500 it expected to produce. The San Jose Mercury News interviewed multiple former and current Tesla employees who estimated that between 400 and 700 workers lost their jobs. Tesla says it plans on filling a "vast majority" of the vacancies with new hires.
Workers in sales manufacturing and administrative roles were fired after the annual reviews were gone through. He worked at Tesla for almost four years, and said he heard about 60 other workers in his section of the factory were dismissed. Little did many the employees know that hell would come in the form of a pink slip. It also said the moves have generally boosted worker morale, as high-performing employees have been rewarded.More news: Austria shifts to the right, empowering nationalists
He said that suppliers will be held to high standards and deadlines or otherwise they could be fired - adding that "if you can make a human in 9 months, you can make a tool in 9 months", in reference to the Model 3 production timeline.
Quoted by the Mercury News, Michael Harley, managing editor at Kelley Blue Book and Autotrader, thought the dismissals could be an effort to improve vehicle production.
"Tesla indicated that all the production equipment for Model 3 was installed and working and that all vehicles were moving through the manufacturing line". "A major change in staff - whether dismissal or layoff - is an indication that there is an upper level movement to put the train back on the tracks".