In Tesla fires hundreds of workers even as Model 3 production ramps up, the author, Nick Statt talks about the news in which Tesla has recently fired hundreds of employees just as the production of Model 3 needs to accelerate. This result is a decision of Tesla’s annual performance review, and people being affected in the industry range from managers, engineers, to basic workers. Some even claim that they are fired suddenly for no reason, and they have never received any bad reviews from the company. However, in Tesla’s words, it’s normal to let a certain amount of workers go based on the generally poor performance after the company-wide review.

Tesla Model 3. Timothy Artman/Tesla

Model 3 is designed to be a product to knock out competitions within the market, yet it now hits the “bottle-neck” of its production. Parts of the car need to be manually made since machines can’t achieve the level of precision in the process of manufacturing. As a result, only 260 of them are produced, 220 being actually delivered out of the expectation of more than 1600 in the third quarter. There are around half a million customers on the list waiting for the cars, and the company’s plan of achieving an exponentially growing rate in production during the upcoming season still seems to be a long way to go.

In contrast with the dismissal in Tesla, Uber is a company which chooses to ignore the inappropriate actions its managers have done and keep its unrestrained culture. From a broader point of view, it may look like Tesla does the right thing to try its best to avoid further incidents of its performance, whereas both of Tesla and Uber have actually reached the failure in performance management. Uber’s loose working environment breeds a bunch of aggressive leaders who, despite having some talent in physically developing a firm’s brand, are misleading the firm and may ultimately ruin everything. As how Nick discusses in his blog, we don’t exactly know the effect of Tesla’s sudden action, but it’s not the right time for it to fire almost 1%-2% of its total labors. What it should really consider is the technique of operational management. Without such a huge group of people, how could it even feed the demand and attain growths within a few months?

Product Roadmap. Jay Caplan

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Reference of Tesla’s logo: Tesla Motors Inc Becomes Tesla Inc With Aim to Focus on Other Businesses!