Tesla is scrambling to ramp up production to meet demand for its new Model 3.

San Francisco - Tesla Motors has fired hundreds of workers after completing its annual performance reviews, even though the carmaker is trying to ramp up production to fill orders for its new Model 3 sedan.

The Palo Alto, California-based company confirmed the cuts in a Saturday statement, but didn't disclose how many of its 33 000 workers were jettisoned. The San Jose Mercury News interviewed multiple former and current Tesla employees who estimated 400 to 700 workers lost their jobs.

Tesla is under pressure to deliver its Model 3 sedan to a waiting list of more than 450 000 customers. 

The company so far has been lagging its own production targets after making just 260 of the vehicles in its last quarter.

Despite the mass firings, Tesla is still looking to hire hundreds more workers.

AP