TSLA Stock Up Another 13%, Tesla Seeks Rent Reductions to Cut Costs amid Coronavirus

UTC by Steve Muchoki · 2 min read
TSLA Stock Up Another 13%, Tesla Seeks Rent Reductions to Cut Costs amid Coronavirus
Photo: Depositphotos

Tesla (TSLA) stock added over $80, approximately 13% to trade above $730 today. The company has sent out an appeal to its landlords to cut the monthly rent cost amid the coronavirus crisis.

Tesla Inc (NASDAQ: TSLA) stock jumped over 13% after adding over $80 in value today, on Tuesday, April 14. The shares have almost recovered all the previous lost profits, as they are now trying to approach the all-time high. At the time of writing, TSLA stock was trading at $732.80 (+12.57%) per share.

Tesla (TSLA) stock has experienced high volatility in the past few months, whereby they had moved from trading at over $900 per share to trading at around $350 per share. The recent bull rally has rekindled hopes on the company amid the coronavirus pandemic.

The company has been strategizing on how to evolve its businesses to readjust the disruption in the supply chain caused by the ongoing coronavirus. The sales have been rising by the day in China, and Europe as more people opt to use climate-friendly motors.

Its CEO Elon Musk has been highlighting major products the company is anticipating to launch in the near future. However, the pressure seems to be building upon the electric company that has been gaining more markets at a first-rate.

One of the reasons that the shares have been rising since the previous free fall is because most investors are betting the company will be in a better position after the crisis, whereby it is expected to pull through.

In a bid to save the company some needed revenue the company has slashed employees pay, and in addition, it said it will furlough hourly workers. The pay cut is expected to be effective until the end of the second quarter.

In addition, the company will also be temporarily closing its production at the Fremont, California, assembly plant.

Tesla Seeks Rent Reduction while TSLA Stock Is in Green

Barely a month after Elon Musk referred the coronavirus panic as ‘dumb’, the company now seems to be on the receiving end. This is after the company reached out to some of its landlords seeking rent reduction.

Through an email, the company wrote:

“The rapid world pandemic that is now affecting our country has led Tesla to make strategic decisions to ensure the company’s long term success and growth.”

“As a result of the increasing restrictions on our ability to conduct business, we would like to inform you that we will be reducing our monthly rent obligations effective immediately”, explained the company.

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