Job cuts have been made by Tesla company-wide, according to a statement on Saturday by the electric vehicle manufacturer.
The Palo Alto-based company confirmed the cuts but did not disclose how many of its 33,000 workers would be affected.
According to reports, it is estimated by former employees that as many as 400 to 700 employees may have been fired from a range of roles including administration, sales and manufacturing.
Meanwhile, an unspecified number of workers received bonuses and promotions following their reviews, according to the company.
The company said earlier in the month that “production bottlenecks” had left Tesla behind its planned ramp-up for the new Model 3 mass-market sedan.
The company delivered 220 Model 3 sedans and produced 260 during the third quarter. In July, it began production of the Model 3, which begins at (US)$35,000.
However, targets were missed for producing vehicles to a waiting list of more than 450,000 customers.
According to a statement from the company, the decision was made in order to boost morale, as high-performing employees have been rewarded.
Despite the mass firings, Tesla plans to hire hundreds more workers in the near future.