Tesla Fires Employees, Recalls Vehicles

tesla fires employees

Last week, Tesla reportedly fired over a hundred employees after the company’s annual performance of around 33,000 of its employees. According to other reports, Tesla’s recent actions also resulted from the weak production of the recently released Model 3 electric car.

The California-based company’s layoffs reportedly included factory employees, managers, sales representatives, and engineers. Tesla is said to have fired hundreds of the said employees in the middle of its efforts in boosting and expanding the production of the latest and most affordable Tesla vehicle the Model 3.

The Model 3 which will be sold at the starting price of $35,000 received hundreds of thousands in pre-orders and reservations upon its unveiling and launch up until the initial release of the vehicle a couple of months ago.

Although Tesla is still not known to have been able to produce a scale of vehicles in parity to that of its rivals General Motors and Ford, the company made a statement a couple of months ago that it would be able to boost its production and make up to 5,000 cars per week before the end of the year. However, most analysts doubted this due to Tesla’s failure to meet its target of 80,000 units for delivery during the year 2016 after only reporting a total delivery of 76,230 units.

Earlier this month, Tesla chief executive Elon Musk stated on his twitter account that the Model 3 production was facing bottlenecks in the production of the of the Model 3 vehicles and its batteries which will result in the company facing challenges in increasing production and output. This also led to the company deciding to delay the reveal of their autonomous semi-trucks by another month.

Also last week, the American electric automobile maker released a statement recalling back around 11,000 units of their 2016 and 2017 Model X electric SUV. According to the company, the involved vehicles’ rear seats might not be able to lock into place. The vehicles which would be recalled involves second-row seats which were produced from October 28, 2016 to August 16, 2017.

Analysts commended the company regarding the early recall of the said vehicle before any actual issues and problems were caused. As early as Thursday last week, Tesla has been informing customers regarding the recall. Owners of the affected vehicles may bring their vehicles to authorized dealers and may also contact the company’s mobile repair units. Tesla’s estimates reveal that only around three percent of the vehicles sold during the said period may be affected by the said issue and that single-post seats from Tesla SUVs will not be affected.

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