As per spokesman of Tesla, like other companies in the market, Tesla also conducts its annual performance review that includes both constructive feedback and recognition of top performers with supplementary reimbursement.
Tesla built about 25,000 vehicles in the three months that ended September 30 but only 260 of those were Model 3s - considerably fewer than the 1,500 it had projected.
The San Jose Mercury News puts the number of firings at between 400 and 700 people, and they affected everything from factory workers to engineers to managers.
A "vast majority" of the departures are in administrative and sales positions, said a person familiar with the matter. Tesla executives reportedly told Rusch that all of the equipment for the Model 3 production line has now been installed and cars are moving through the line.
Firing hundreds of people during "production hell", a term Musk used during the investor call, may seem at odds with the current urgency at Tesla to ramp up production of the Model 3 in order to satisfy the 400,000+ customers who have placed $1000 deposits on the electric sedan.
Whether dismissals of hundreds of employees for performance reasons help or hurt those efforts will likely never be known. Little did many the employees know that hell would come in the form of a pink slip. The latest reports indicate that the company has been enforced to produce some particular parts by hand which slowed down the overall assembly process.
He maintained his Model 3 shipment forecast of 3,005 this year out of a total of 100,056 deliveries this year but slashed his losses estimates dramatically.
Michael Harley, managing editor at Kelley Blue Book and Autotrader, thought the dismissals could be an effort to improve vehicle production.
The California-based company said, earlier in the month, that "production bottlenecks" had left Tesla behind its planned production expansion for a new cut-price model.