Tesla stock tumbled on Monday on a hodgepodge of different headlines varying from the company's mass firing supposedly based on performance to a report that some people are selling their Model 3 reservations.
"As one of companies with more than 33 thousand employees, performance assessments often result in separation from company".
Although Tesla confirmed the dismissals, it did not reveal the exact number.
Musk's original goal was for Tesla to produce 1,500 Model 3s in the third quarter, a sizable jump en route to increasing production to 20,000 vehicles per month by the end of the year and 50,000 a month by the end of next year.
The maker of the Model S this week dismissed between 400 and 700 employees, including engineers, managers and factory workers, the San Jose Mercury News reported on October 13, citing unidentified current and former workers.
Meanwhile, a Tesla representative said the dismissals would not have an effect on Model 3 production and that a "vast majority" of the vacant positions would be filled with new hires. Among other benefits, Liberty will offer to replace damaged Teslas that are deemed a total loss within the first year, according to the automaker's website.
Workers in sales manufacturing and administrative roles were fired after the annual reviews were gone through. Elon Musk prefers to work long hours as he serves as CEO of Tesla and SpaceX simultaneously.
Tesla said the performance-based departures were not considered layoffs and not subject to state notifications. "We don't know how high up it went", said the former employee, who worked on the assembly line and did not want to be identified. The first ever mass-marketed vehicle from Tesla is being restricted by "production bottlenecks", according to CEO Elon Musk.
The firings came in the middle of the company's production ramp-up of the Model 3.
Juan Maldonado, a production worker, told the paper that he was sacked last week after close to four years at Tesla.