Luxury electric vehicle maker Tesla Inc fired between 400 and 700 employees this week, including engineers, managers and factory workers, Mercury News reported on Friday, citing interviews with former and current employees.
The dismissals were a result of a company-wide annual review, Tesla said in an emailed statement, without confirming the number of employees leaving the company.
The Palo Alto, California-based 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 starts at $35,000 - half the starting price of the Model S.