Tesla Motors has fired hundreds of employees after annual performance review. The company confirmed the move but the management hasn’t mentioned the exact number of employees fired during the current performance review. As per media reports, the number could be between 400-700 Tesla employees. The company added that these weren’t layoffs and Tesla is planning to hire additional staff for meeting the production targets.

The report published by The Mercury News has confirmed that the current event would impact factory workers, engineers, sales staff and managers. The decision has been taken purely based on performance of employees, the company informed. Tesla Motors spokesperson added that many people have received bonus and some have been promoted, depending on performance.

The official statement informed, “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 is facing tough time to deliver Model 3 vehicles. The company has more than 450,00 pending orders for its latest electric car, specially launched for mass market. Recent reports suggest that Tesla is facing production bottlenecks and the company could delay deliveries for Model 3.