Elon Musk’s electric car company was forced to wind down production at its main vehicle assembly plant in Fremont, California due to the health orders, implemented to curb the spread of COVID-19.
Investors are pleased with the new pay cuts that follow Tesla’s first-quarter vehicle production and deliveries report. According to the company ,it delivered approximately 88,400 vehicles and produced 103,000 in Q1. The company has yet to withdraw guidance it gave investors for 2020, saying it should “comfortably exceed” 500,000 vehicle deliveries for the year.
It was informed by Tesla last week that staffing agencies, would be ceasing all contract work until further notice. Many hundreds of temps were dismissed from their Tesla gigs as a result.
The email further proceeds to say that employees who cannot work at home and have not been assigned to critical work onsite will be furloughed. Under this furlough, they remain as employees of Tesla (without pay) and retain their healthcare benefits. They will not report to work until the furlough ends and until they are directed to return by management, which is expected to be on May 4.
Also, it was made clear that the company will continue to monitor the situation closely, and their top priority is to ensure the safety of their employees. And for those who are onsite, if they are sick or are uncomfortable coming to work , they are advised to contact their manager and stay at home.