While you might think your annual performance review could mean you need to work harder in some areas and develop a stronger skill set, unless you work at Tesla, you probably feel pretty secure in your job as long as the company continues to grow and develop. Recently, during their annual performance review sessions, hundreds of workers at Tesla Motors were shown the door and fired, even though the company is working to ramp up the production of the new Model 3. These workers that were fired must not have fit the desires of Tesla and the plan that’s in place any longer.
This housecleaning sweep by Tesla affects all areas of the company including administrative, sales, and manufacturing. Even though Tesla has fired what is rumored to be between 400 and 700 employees out of the 33,000 that work at Tesla, there were several employees who also received bonuses during this annual review process. Does this mean that Tesla is an employer that is performance based? It certainly appears that way, and it seems that should be the way any company operates when employing those it needs to get the job done and help the company grow.
Where does this leave Tesla?
The pressure for Tesla to deliver the new Model 3 sedan to the waiting list of over 450,000 customers has become intense. So far, there have only been about 260 of these cars built last quarter since the car came off the line for the first time. With the list of the other models offered as well, Tesla should reach a level of having 100,000 vehicles built and delivered this year. This may sound like a good number, but it’s pretty slow considering the goals that have been put in place for the new Model 3 and what is expected to be produced by this company.
In order to reach 500,000 cars per year produced, Tesla will have to ramp up production and hire more workers to replace those it has fired and then some. While it may seem counterproductive to fire people and have to retrain others, the message has been sent that Tesla expects performance from its workers, which it certainly will need in order to support the current market value of t $59 billion for a company that has still not ever posted an annual profit in its time in business.
Will we see Tesla reach the goal of 500,000 vehicles produced by the end of next year? Right now, it doesn’t appear they are on the right path to make that happen, but it is possible and the brand might be able to ramp up in a huge way to eventually have the production level needed to support the customer orders of the Model 3 and then some. We will certainly keep a close eye on what Tesla does for the next few months to address the needs to increase its production levels, but it seems this mass firing will result in a step in the wrong direction.
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