TSLA Stock 2% Down, Coronavirus Job Furloughs at Tesla Topped 12,000

UTC by Daria Rud · 3 min read
TSLA Stock 2% Down, Coronavirus Job Furloughs at Tesla Topped 12,000
Photo: Shutterstock

About 11,100 Tesla employees were affected in two Fremont locations. 5,850 of them were production associate positions. 156 workers got under blow in Lathrop. TSLA stock is down now.

Several months ago, before the coronavirus pandemic started, Tesla‘s business went smoothly, showing promises and anticipating success. But because of the virus outbreak, Tesla Inc (NASDAQ: TSLA) had to take to solid measures such as shutdowns, job furloughs, and pay cuts. According to official filings with the state labor agency, coronavirus furloughs at Tesla have surpassed 12,000.

In March, Tesla announced a temporary shutdown and halting production at its Bay Area factory in California. Its factory in New York has also temporarily ceased manufacturing. Continuing with “basic operations,” Tesla cut pay and started furloughing employees who aren’t assigned to critical work or can not work from home. The company conducted furloughs not on the basis of performance but according to the rank and occupation of workers.

Valerie Capers Workman, HR executive at Tesla, said:

“We decided to furlough these employees as a result of COVID-19, including a sudden and unpredictable impact on Tesla’s operations and employees.”

The coronavirus furloughs at Tesla have topped 12,000. About 11,100 employees were affected in two Fremont locations. 5,850 of them were production associate positions. 156 workers got under blow in Lathrop (Tesla operates a distribution complex there).

In its WARN notice, Tesla said:

“Assuming that business conditions improve, the company expects the actions it is taking are temporary and that some or all of these employees will be able to return to work in the future.”

Earlier this week, Tesla reopened its Fremont factory in California despite disputes with the authorities. To invalidate orders preventing it from reopening, Tesla CEO Elon Musk filed a lawsuit against the Alameda County seeking injunctive relief. Besides, Musk is considering moving the Tesla headquarters from California to Texas or Nevada. The irreversible decision will depend on how Tesla will be treated in the future.

Elon Musk: the Society’s Response to COVID-19 is ‘Dumb’ and ‘Fascist’

The pandemic disturbed Elon Musk’s plans to revolutionize the auto industry. Considering stay-at-home orders unnecessary and “fascist”, Musk called the society’s response to COVID-19 outbreak “dumb” and a “panic.”

Such an attitude is mainly the result of Musk’s disagreement over Fremount’s factory business that the authorities called “non-essential” during the pandemic. Musk has won this battle as California’s Alameda County finally let the factory open, but the bad aftertaste has been left.

Giving in, the county said:

“We will be working with the Fremont Police Department to verify Tesla is adhering to physical distancing and that agreed upon health and safety measures are in place for the safety of their workers as they prepare for full production.”

The U.S. President Donald Trump is underestimating the coronavirus pandemic as well. Earlier, he said that the world probably does not need a vaccine as COVID-19 will end before it is created. Trump has gone all out in support of Elon Musk and said Tesla’s reopening can be safe.

Tesla Stock Down at the Close but Up in Pre-Market

Amid this news, Tesla (NASDAQ: TSLA) stock dropped by 2.28% yesterday to close at $790.96. Though it has rebounded by 0.77% in the pre-market today, at the moment of writing, Tesla stock makes up $782.50 per share (-1.07%).

This year, Tesla stock is highly volatile because of the coronavirus pandemic. This year, Tesla shares are 89.08% up, and some analysts believe that new peaks are on the horizon.

The Tesla 52-week highest stock price was $968.99, the 52-week lowest stock price was $176.99.

How other companies are dealing with the pandemic impact, you can read here.

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Daria Rud
Author Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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