In Response to False Allegations

There is a false allegation that Tesla terminated employees in response to a new union campaign. These are the facts behind the event:

• Tesla conducts performance review cycles every six months. Employees receive a performance rating from 1 to 5 in each cycle that helps them calibrate their work with the expectations of their job. In the worst case, if an employee fails to meet their performance expectations they will be let go.
• This review process takes place globally, including in North America, Europe, China, etc. It is not localized to Buffalo.
• The most recent performance review cycle was from July 2022 through December 2022. On December 13th, 2022, managers across the company received a communication regarding the review schedule. This included information noting that exits for low performers would start the week of February 12, 2023.
• Approximately 4% of the employees on the Autopilot labeling team in Buffalo were exited as a result of this performance review cycle. The employees let go as part of this process received prior feedback on their poor performance from their managers over the course of the review period. Despite feedback, they did not demonstrate sufficient improvement.
• The impacted employees were identified on February 3, 2023, which was well before the union campaign was announced. We became aware of organizing activities approximately 10 days later. We learned in hindsight that one out of the 27 impacted employees officially identified as part of the union campaign. This exercise pre-dated any union campaign.
• The labeling team in Buffalo, NY has been growing over the last several months at an average rate of around 10 employees a week. Over the last 6 months, the department's employee base has grown 54%, from 437 employees to 675 employees as of the beginning of this week.
• The reason there is time monitoring for image labeling is to improve the ease of use of our labeling software. Since its purpose is to calculate how long it takes to label an image, there is nothing to be gained by delaying bathroom breaks. The claim that Tesla pressures employees to do so is categorically false.

Our employees in Buffalo are core to our mission of accelerating the world’s transition to sustainable energy, helping to build Superchargers, Solar Roof and power electronics for many applications.