Within a month of two senior leaders-Head of Business Development and the Veteran Battery Technology Director exiting the company, Tesla Inc. reportedly fired between 400-700 employees following a series of performance appraisals. Employees including Associates, Team Leaders, and Supervisors were affected by the decision. 

According to a Tesla spokesperson’s e-mailed statement, the company said, “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.” 

The dismissals said to come after Tesla said it produced 260 Model 3 sedans during the third quarter, against a 1,500-unit forecast. Company founder Elon Musk described the execution of the Model 3 as production hell as he had projected being able to make 20,000 Model 3’s a month by this December. And while there’s a very long waiting list for the highly anticipated vehicle, just 220 were shipped in the last few months.

In the e-mailed statement, it was also stated that the company is continuing to grow and will hire new employees around the world. Presently, the company has more than 2,000 job openings on its careers website.