Report: Tesla to implement salary cuts, furloughs


Electric vehicle maker Tesla will cut salaries and furlough hourly workers as the company copes with fallout from the COVID-19 pandemic, CNBC reported Tuesday.

The network reported on an email from Tesla HR director Valerie Capers Workman. The electric vehicle website Electrek also reported on the email.

The email called the cuts “shared sacrifice across the company” but didn’t mention the Nevada Gigafactory, which produces batteries and drive trains for cars produced at the company’s Fremont, Calif., factory. 

The email said salary cuts will be 30 percent for vice presidents and above, 20 percent for directors and above and 10 percent for others.

Story continues below:


Tesla has allowed tours of Nevada’s Gigafactory 1 in the past to media and officials, but a comprehensive safety inspection still has not occurred. Reno Gazette Journal

Furloughs for other employees will last until at least May 4, the email stated. The cuts and furloughs will begin April 13, according to the email.

“We know that the uncertainty has not been easy, and we are doing everything we can to keep you safe and informed while also navigating the changes around the world,” the email stated.

Panasonic, Tesla’s partner at the Gigafactory, suspended operations on March 20. 

Read or Share this story: