Tesla fires hundreds of employees

Electric car maker Tesla Motors fired hundreds of workers this week after completing its annual performance reviews. The news was first reported by the San Jose Mercury News on Friday.

It said an estimated 400 to 700 workers, including engineers, managers and factory workers had been let go according to interviews with former and current Tesla employees.

In a statement, Tesla did not confirm the number but said the job cuts were standard procedure, part of the company-wide yearly appraisal process. It added that some workers also received promotions and bonuses and that they expected to fill the vacancies.

“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,” a Tesla spokesman said in a statement to Fortune.

“This includes both constructive feedback and recognition of top performers with additional compensation and equity awards, as well as promotions in many cases.

“As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures. Tesla is continuing to grow and hire new employees around the world.”

Tesla’s chief executive officer Elon Musk has ambitious plans to increase production five-fold raising the production to half-million electric vehicles in 2018 in order to meet Tesla’s market value of $59 billion. The company expects to deliver about 100,000 vehicles this year.

Tesla said earlier this month that it has only managed to produce 260 of its Model 3 in the last quarter to a waiting list of more than 450,000 customers.