Tesla has fired hundreds of employees across both its California headquarters and Fremont vehicle production factory. According to a report, an estimated 400 to 700 workers were let go, based on employee reports.

Tesla CEO Elon Musk in 2014. Photographer: Pete Marovich/Bloomberg via Getty Images

Tesla, in a statement, said after the company-wide annual review report, it let employees go based on lackluster job performance. “As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures,” The Mercury News reports.

According to the company, most of the employees fired were in sales and administration, and the firings will have little effect on the factory workforce in Fremont.

Tesla is currently behind on production of Model 3 sedan. Elon Musk, CEO Tesla decided to delay the announcement of company’s new Semi truck product to November to focus on getting the Model 3. More than half a million people are currently on the waiting list for the Model 3, Tesla’s most affordable and mass market car, which starts at $35,000.

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