It seems that Tesla Motors Inc (NASDAQ:TSLA) is not done with the mass firing that started sometimes ago in its EV unit. News reports hints that the firing has spread to SolarCity offices across the U.S. SolarCity employees were said to be dazed when told they were fired for performance reasons when Tesla in actuality had not conducted any performance reviews since it acquired the solar energy business. The firing began earlier this month after Tesla recalled 11,000 Model X SUVs.
What could have probably gone wrong?
SolarCity was founded by Musk’s cousins Lyndon and Peter Rive in 2006, with Musk been the highest shareholder and chairman right from its early days. In 2016, Musk bought SolarCity for $2.6 billion in November 2016 in a deal that enable Musk to sell both electric vehicles and solar roofs to customers under one brand.
SolarCity started the installation of its own Solar Roofs, which looks more like a normal roof but contain solar panels buried within regular tiles. Mr. Musk is reported to be in discussion with the government of Puerto Rico on how to rebuild the island’s storm damaged power grid through solar energy.
However, the move was seen by critics to be very dangerous and would distract Tesla from making great cars. Critics were also skeptical about cooperate governance based on the relationship between both companies. Now, SolarCity serves as a subsidiary of Tesla.
More than “Performance reasons”
Solarcity employees across four states all said Tesla HR managers fired them in person; some firings reportedly happened during big group employee meetings. Just like other Tesla employees, SolarCity employees then received separation agreements through email. According to excerpts of the document, the single reason why their appointment is been terminated is because of “failure to meet performance expectations.”
{Get more information about: Tesla Silences Naysayers with Upgraded Delivery Outlook}
Two former employees who spoke on the condition of anonymity reported that the Roseville office was completely shut down while a Tesla spokesperson said the office would remain open with more than 50 full-time employees.
Right now, the total number of people who have been dismissed cannot be determined, but an estimation 1,200 workers have been fired from both Tesla and SolarCity. In addition, this company has announced last month that it would soon sack another 205 SolarCity employees at its Roseville, California office by the end of October.
A Tesla representative reached declined to comment on the number of workers that were laid off but pointed to a previous statement the company issued as regards the company’s nationwide dismissal. According to another source, three of the former SolarCity employees who worked in different cities reported that they did ask for the copy of their performance reviews, this company is yet to produce until date while another worker claimed that HR department representatives told staff at one office they were been dismissed because of problematic conduct with peers.
This comes at a very crucial time for this company, which is currently behind schedule for its Model 3 mass market EV. It was reported that CEO Elon Musk deliberately delayed the announcement of its new semi-truck product to November in order to get Tesla’s most affordable and mass-market car out as soon as possible. Last week alone, between 400 and 700 people ranging from factory workers to engineers and managers were fired from the company’s headquarters in Palo Alto.
Tesla Inc. is expected to hold its quarterly earnings call by on November 1, with expectation that Musk is going to address the issue of the sudden firing of employees from both Tesla and SolarCity.
Leave a Reply