Tesla reportedly fired hundreds of employees

Tesla has fired hundreds of employees from its headquarters in Fremont, Calif., this week, according to the Mercury News. The automaker fired reportedly between 400 and 700 employees across various functions, though the company says it was the result of performance reviews and not layoffs, adding it expects to replace most of the employees.

Why it matters: The move comes in the midst of reports that Tesla is struggling to meet the demand for its cars, only producing 260 units of its Model 3 car last quarter despite a long waitlist. The company is also scheduled for a hearing with the National Labor Relations Board next month over allegations that it prevented employees from distributing information about unionizing.