Tesla is cutting jobs in China under a new restructuring plan launched earlier this year after failing to meet its sales target in the largest car market in the world.
The electric vehicle maker hasn't said how many jobs would be cut yet, according to CNN. The company also hasn't commented on a report by the Economic Observer that claimed it was eliminating 30 percent of its staff or 180 of its 600 employees in China.
While some jobs are being cut altogether, others are being added, though the overall number has dropped in a restructuring drive announced a few months ago, Tesla spokesman Gary Tao said.
"The first strategy is to build up a strong and efficient team to respond more quickly to the market, so this is part of the effort to implement that strategy," Tao said, according to Reuters.
Tesla has high goals for China. The Model S-maker is looking to sell 500,000 vehicle a year by 2025. The company also wants to make a factory in China within the next three to five years.
Tesla's Model S, which went on sale in China back in the summer of 2013, currently goes for $115,000 in China.
Sales have not lived up to sales targets set by the company and company CEO Elon Musk isn't afraid to fire overseas executives in order to turn things around, according to Reuters.
Musk said that there is still a "misconception that charging was difficult" in China. People are still worried that they won't be able to charge at home if they don't have a garage. Musk says that people shouldn't be worried though since the company plans to install free charging station all over China to increase sales.
Tesla delivered 9,834 vehicles during the fourth quarter of 2014, and built 11,627, a new company record. Production delays for the dual-motor P85D version of the Model S pushed back some deliveries to the first quarter of 2015.