By on April 8, 2020

At the dawn of the new year, it seemed Tesla was finding its groove. Production flowing well, some past headaches ironed out, a Chinese plant up and running, a potentially lucrative crossover ready to go, and back-to-back black ink on its quarterly earnings reports.

Hoping to safeguard its future, the automaker is now prepared to furlough workers for the coming month and slash salaries thereafter.

The info comes via an email, seen by Reuters, that was sent to Bay Area and Buffalo Tesla employees late Tuesday. In it, Valerie Capers Workman, the automaker and solar roof tile maker’s in-house counsel, said domestic production will resume May 4th.

Tesla isn’t alone in picking the first week of May as a target for factory restarts. Yesterday brought news that Honda, Nissan, and Fiat Chrysler were also eyeing a beginning-of-May resumption.

In the email, Workman said non-essential employees — those who can’t work from home, or aren’t tasked with a crucial factory tasks in the interim — will be furloughed until production returns, with healthcare benefits staying in place. For the white collar crowd, pay cuts will begin April 13th, both in the U.S. and overseas.

Here, salaried workers will see a 10-percent pay reduction, with directors receiving a 20-percent cut. Vice presidents are tapped for a 30-percent cut. The reduction in pay will continue until the end of the second quarter of 2020, Workman wrote.

At last report, the automaker said its cash position was sufficient to weather the coronavirus storm; however, the production shutdown will hamper deliveries of what’s expected to become the automaker’s best-selling model — the just-introduced Model Y. Production of that vehicle began in January.

[Image: Tesla]

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18 Comments on “Pay Cuts, Furloughs Inbound at Tesla...”


  • avatar
    SCE to AUX

    Pretty soon, all the kids will be doing it.

    https://www.thetruthaboutcars.com/2020/04/report-mass-layoffs-coming-to-nissan-workforce/#comment-9894880

  • avatar
    cprescott

    There will be no reductions. Each will get the money back – call it delayed compensation. There is nothing here other than the luxury golf cart producer still makes cars that cost a lot and make their payoff less remarkable over a comparable class vehicle. And these aren’t even luxury cars! If these were as efficient as they are told to be, the 0-60 performance would not be important and all of the time spent would be to build electric cars that can go 500 miles on a “tank” like my 2016 Hyundai can do.

    • 0 avatar
      mcs

      @cpresscott: Is this what you drive?:
      youtube.com/watch?v=Y5aCZiR-j7o
      https://www.bdoutdoors.com/forums/threads/1992-hyundai-golf-cart-36v.577369/

      Funny, can’t find any Tesla golf carts. 500-mile range? Some of us don’t really want to wear the type of undergarments necessary in order to drive continuously for 7+ hours. I much prefer having a car that is fully fueled at home and eliminates the need to take valuable time out of my day to get off the road and stand next to a pump loading the thing with fuel. I know it only takes five or ten minutes (not counting the time to fight your way back into traffic), but that time adds up. Then there’s dealing with oil changes, belt replacements, check engine lights, and all of that other crap that goes with ICE ownership. No thanks.

      • 0 avatar
        ajla

        500 miles or range would be very nice though. Not because I necessarily want to drive that far but it would give a nice safety cushion.

        • 0 avatar

          Totally understandable. One never knows when one might be asked to “drop everything” and head out to an unplanned location.

          For instance you could be sitting on the beach in Key West, Florida and “get the call” and have to go to Cold Bay Alaska. Immediately.

          So to be perfectly honest EV’s won’t catch on until they can “go the distance” on a single charge of at least 6,026 miles.

          Let’s round that up to 7,000 miles as a safety cushion.

          • 0 avatar
            ajla

            Glad to EV superfans are still charming and reasonable.

          • 0 avatar
            EBFlex

            “ Glad to EV superfans are still charming and reasonable”

            Never have been and never will be.

            It’s amazing the little tantrum they throw when they read that someone desires an electric vehicle that can do what a $14k Nissan Versa can do.

            I guess it’s too hard for them to recognize the major shortcomings of electric vehicles and how incredibly bad they are for the planet.

        • 0 avatar
          Flipper35

          It would make up for the 45-60 minute wait for it to recharge.

          I think if they got the recharge time down to 10 minutes with an infrastructure similar to gas stations, even with a 200 mile range, they would sell very well.

  • avatar
    EBFlex

    Hopefully this Corona cold going around will be the final nail in Tesla’s coffin.

    • 0 avatar
      JimZ

      “Corona cold”

      colds don’t put people in the ICU, you d**k.

      • 0 avatar
        EBFlex

        Relax snowflake.

        Colds can certainly put people in the ICU. It’s rare but it happens.

        But the fact is the vast majority of people (95%) will see mild symptoms from this cold. Time to relax, go outside, and enjoy spring.

        • 0 avatar
          Lie2me

          ” Time to relax, go outside, and enjoy spring.”

          Please do and try not to “catch cold”

          People like you go beyond ignorant and straight to dangerous, but like the others you love the attention like Cheetolini himself

          • 0 avatar
            EBFlex

            “People like you go beyond ignorant and straight to dangerous, but like the others you love the attention like Cheetolini himself”

            How is going outside ignorant and dangerous?

            People like you are the reason everything these days has to be a hysterical, end of the world catastrophe. Absolutely zero common sense and easily manipulated by the media.

      • 0 avatar
        Art Vandelay

        Actually they can, depending on your state when you catch it.

    • 0 avatar
      SCE to AUX

      What nails are already in Tesla’s coffin?

  • avatar

    All, I can assure you: Tesla will survive. And you know what to do with these nails.

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