Tesla Starts A Whole New Round Of Mass Firings, This Time At SolarCity

Tyler Durden's picture

Poor Elon Musk really, really can't catch a break.  Just over the past couple of weeks he's been forced to push back his Model 3 delivery schedule due to some "production hell" issues (like not knowing how to weld...a fairly critical component of auto manufacturing), got one-upped by Daimler who beat him to the punch by revealing an all electric semi-truck earlier today (several weeks ahead of Elon), was sued by former employees who alleged a "hostile and racist work environment" in his Fremont plant...and the list goes on and on. 

Now, according to a report from CNBC, Tesla's mass firings have spread to SolarCity, a company which Musk just purchased last year despite warnings from concerned shareholders that it would be nothing more than a distraction.  While it's unclear how many people have been fired from each division, former employees estimate that some 1,200 people have been let go in total between the various Tesla entities.

Employee dismissals at Tesla are continuing, according to six former and current employees, and have spread from its motor division to SolarCity offices across the U.S.


Echoing reports from earlier this month, these SolarCity employees say they were surprised to be told they were fired for performance reasons, claiming Tesla had not conducted performance reviews since acquiring the solar energy business.


All the people spoke under condition of anonymity, citing fears of retaliation from Tesla.


Tesla had already announced plans to lay off 205 SolarCity employees at its Roseville, California, office by the end of October this year. However, SolarCity employees across the country have been fired in the last two weeks — not just in California, but also in Nevada, Arizona, Utah and beyond, according to these employees.


Two former employees told CNBC that the Roseville office was being completely shut down. A Tesla spokesperson said the office will remain open with about 50 full-time employees.


The total number of dismissals could not be determined. However, former employees estimate around 1,200 people have been fired in the company's wave of dismissals at Tesla including SolarCity. That figure does not include previously announced layoffs.


When asked about the mass firings, Tesla once again reiterated their stance that the 1,200 people in question were being terminated as the result of "performance reviews"... 

"Like all companies, Tesla conducts an annual performance review during which a manager and employee discuss the results that were achieved, as well as how those results were achieved, during the performance period. This includes both constructive feedback and recognition of top performers with additional compensation and equity awards, as well as promotions in many cases. 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."

...which is odd because SolarCity employees, much like those working at the Tesla plant in Fremont, say they were never given performance reviews.

SolarCity employees (like other Tesla employees) then received separation agreements via email. The documents cited "failure to meet performance expectations" as the reason for their terminations, according to excerpts of the documents shared with CNBC by multiple parties.


The former SolarCity employees all said performance reviews had not been conducted since Tesla acquired the clean energy business for $2.6 billion in November 2016.


Three recently fired SolarCity employees (who worked in disparate city offices, and were contacted separately by CNBC) said they asked HR at Tesla for a copy of their performance reviews. But those never materialized.


In some cases, HR never acknowledged their requests but went ahead and sent them separation agreements. These agreements force ex-employees of Tesla into arbitration if they want severance pay. In other words, they have to sign away the rights to sue the company for two weeks' worth of salary.

Meanwhile, these angry, laid-off employees don't seem to be buying it.

But it's ok, they can presumably all re-apply for their positions once Tesla opens it's new manufacturing facility in China...though it will require a fairly long-distance move and a rather sizeable pay cut.

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SloMoe's picture

Demand must be going through the (solar) roof...

wildbad's picture

imagine how fast these jobs would be flying out the door without the tax support

jcaz's picture

He only bought this deal to bail out his cousin, who has since left the company-  why not?  It's not like it's his money.......

bamawatson's picture

long red wine & ambian

BuddyEffed's picture

Me thinks Elon needs a performance review of himself.

CheapBastard's picture

Obama handed millions of Americans jobs to China, Bangladesh and Mexico.

They can go there and apply.

Mr. Universe's picture

Bu bu...Elon is a visionary! Imagine when he gets his all electric solar powered space sail ship up and running. That will show 'em.

A Sentinel's picture

I can spot a diseased ceo from a pretty good distance and Elon has that king of aura; but I have a new theory.... Obama and co loved this fee good pseudoscience based environmentalalism.

What if trumps people are withholding subsidy checks? That would explain a bit.

Pinto Currency's picture

Tesla rapid, unscheduled disassembly underway.

E.F. Mutton's picture

Does this mean the Monorail won't be Solar Powered?

JungleCat's picture

Questioning Elon is hate speech!

Because Elon is the Godhead and we must submit to his genius.

Rainman's picture

and now .. Onward to MARS !!

wildbad's picture

real good unsubsidised transport


Utopia Planitia's picture

When do we get to see Musky Scent, McStain, MaxiPad Waters, Nantucket Pelosi, Ima Flake, unCorker, and Cowbell Wilson powering one of those (each)?

WhiteHose's picture

Looks like an alien to me. 

CriticalUser's picture

He's not.

You morons that see jewish conspiracies everywhere are sickening. You ruined the comment section of ZH with your garbage spewing.

Never thaught Idiocracy would become real so quick...

screw face's picture

WHAT...is musk getting into, ''screen spew dection?

..google will be pissed.


Squid Viscous's picture

he's a Jewbag, who else could be such a consumate con man?

I Art Laughing's picture

In order? Elizabeth Holmes? Bernie Madoff? Janet Yellen?

MoreFreedom's picture

Musk, being bipolar, is likely to have some issues managing people, rather than dealing with things and engineering.  I don't think his personal skills are as good as he'd want for someone filling his job.  And I suspect his cash flow situation has led to the firings.  I wouldn't be surprised if he's overreacting somewhat. 

Tesla and Solar City are what they are, and Musk is what he is. 

rubiconsolutions's picture

Apparently it's time to go back to the taxpayer teat.

2Blondboys's picture

It has been nothing but a government subsidy slush fund.


All will be well with the introduction of the solar powered hydraulic piston fudge packer Elon developed for his gay gang banger schlong groupies.

CheapBastard's picture

"Firing peeples be rayciss!"


~ Maxine Waters

hestroy's picture

LOL!!! Musk is really a genius, right?

ejmoosa's picture

Let's wait and see if he gets some tax credits to hire the people back before we answer that question.

TheSilentMajority's picture

Tesla going the way of Radio Shack and Toys r Us?

Moe Howard's picture

Wil there be a coke deal at some point?

Chauncey Gardener's picture

Not to worry, Tim Cook is going to retire from Apple and take over the reigns. That'll fix everything. Gays to the rescue.

ReturnOfDaMac's picture

Replacing exceptional snowflakes with robots maybe?  Could be setting a trend...

Herdee's picture

Poor quality control at Tesla.

Rich Monk's picture

Before these companies go into bankruptcy the taxpayers want their $5 Billion dollars back!

ParkAveFlasher's picture

$5B / 122M taxpayers = @ $40/person...I'll take two silver ounces, please!

jewish_master's picture

pick a number and stand in line

ThunderStruck's picture

The "Fat Lady" is in the dressing room warming up for the ultimate demise of Tesla. And not a moment too soon, it's pathetic watching taxpayer subsidies being wasted on a company that hasn't turned so much as $1.00 in profit since it began operations 13 fucking years ago...

Evan Wilson's picture

They just need a little more time (and taxpayer money).

adonisdemilo's picture

I guess the tax breaks and developement grants are drying up.

izzee's picture

funny thing is that here in my semi rural/suburban MD county, Solar City is doing gangbusters...if you count all the houses that have rooftop installations, the farms that have a 1/2 acre of panels powering dairy barns and grain operations, larger homes that have a couple of large racks of panels on the property.  Anyone who's not got a house in the woods has installed Solar City panels in the past 3 years.

Moe Howard's picture

Maryland Solar Incentives




Not so odd, state and fed are paying well for this

JoseyWalesTheOutlaw's picture

Maybe Obama can help the boy out since The Donald doesn't have the time of day for him

8iron's picture

The displaced workers can go to Fremont as temps for $10/hour...


roadhazard's picture

All the slackers hate Musk.

aliens is here's picture

I see factory going to in China and Mush will sell it back to USA.