Tesla will cut pay for all of its salaried employees and will furlough hourly workers until May 4, when it intends to resume production of electric cars, according to an internal e-mail that multiple employees shared with CNBC. The pay reductions are expected to be in place until the end of the second quarter.
Health orders, implemented to curb the spread of COVID-19, forced Elon Musk’s electric car company to wind down production at its main vehicle assembly plant in Fremont, California.
The new pay cuts follow Tesla’s first-quarter vehicle production and deliveries report, which pleased investors — the company said it delivered approximately 88,400 vehicles and produced 103,000 in Q1. Tesla has yet to withdraw guidance it gave investors for 2020, saying it should “comfortably exceed” 500,000 vehicle deliveries for the year.
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