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Tesla has begun to retrench its contract workers in the U.S. But not all news from Tesla can be viewed as negative. TSLA stock is in the green while stocks of many other companies are down.
Even as Tesla Inc (NASDAQ: TSLA) stock continues to soar, the electric car manufacturer has begun retrenching contractors at its U.S. car and battery plants. Reportedly, the firm is cutting down the number of contractors from its workforce in its factory across many states alongside where they make battery packs that power electric vehicles and energy storage products. According to in-house anonymous sources, the lay-off would affect a row of people.
Some people who have been working at Tesla for many years and hoped to get full-time jobs at Tesla were notified about their retrenchment.
The memo from Balanced Staffing sent to dismissed workers reads:
“It is with my deepest regret that I must inform you that the Tesla factory shutdown has been extended due to the COVID-19 pandemic, and as a result, Tesla has requested to end all contract assignments effective immediately.”
The agency said to the contractors that they would still remain to be Balanced Staffing employees, as they could get other jobs through their network. The agency also said they would do all they can to ensure that the contractors get their Tesla job back in the future and assured them that their retrenchment is not a pointer to the quality of their work but hostile business conditions.
Other contractors hired through other agencies also got their notice on Thursday and Friday as both Tesla and Balance have not answered and said anything about it to the media.
Tesla (TSLA) Stock Is Rising
After the retrenchment, on Friday, Tesla (TSLA) stock rose by over 5% while other company’s shares went down. Tesla stock rise began after the firm reported first-quarter vehicle deliveries that pleased investors. Tesla delivered approximately 88,400 vehicles and produced 103,000 in Q1 2020.
Before achieving this feat, Tesla quarreled with local health orders in Alameda County, where it has an assembling plant that could have forced the firm performs only basic operation since March 17th. Tesla kept the plant running at full capacity; however, until March 23rd, a week more than other businesses in the area while battling with authorities if the firm is an essential service provider exempted from orders.
Tesla (TSLA) stock hiked by 5.62% to trade at $480.01 on Friday. However, after hours it lost 1.04% of its value and went slightly down to $475.00.