The company confirmed the job cuts in a statement on Saturday.
According to local reports, the numbers are estimated to be between 400 to 700 workers, mostly in administrative, sales and manufacturing.
While hundreds were terminated, others received bonuses and promotions as a result of the review.
The company expects to make about 100,000 cars this year.
CEO Elon Musk is aiming to increase production fivefold next year and is hiring workers amid the mass dismissal.
Earlier this year, Tesla welcomed Gaby Toledano as its chief people officer, leading Human Resources and Facilities, reporting into Elon Musk.
Gaby joined Tesla after 10 years on the executive team at Electronic Arts (EA), during a time of transformation and growth. Prior to EA, Gaby led human resources
at Siebel Systems.
It is unclear whether the move is a direct result of the change in HR leadership.
Tesla, founded in 2003, says its mission is to accelerate the world’s transition to suitable energy. It has a current market value of $59 billion, bigger than Ford Motor Co.’s.
The iconic electric auto manufacturer Tesla terminated hundreds of workers last week after a company-wide round of performance reviews.