Apr 8, 2020 - Economy

Report: Tesla to cut employees' pay up to 30% and furlough workers

Rebecca Falconer

Elon Musk speaks beside the just unveiled new Tesla Model Y (R) in Hawthorne, California on March 14, 2019. — Tesla CEO Elon Musk, who has previously downplayed the coronavirus threat but later pledged the firm would send 250,000 masks to California hospitals, in Hawthorne, California, in 2019. Photo: Frederic J. Brown/AFP via Getty Images

Tesla will cut salaried employees' pay and furlough non-essential workers until May 4, when it expects to resume production at its Bay Area plant, several news outlets reported late Tuesday, citing an internal company memo.

The big picture: Higher-ranked officials will see a 30% pay cut, directors' pay will be reduced by 20% and all others' pay will drop 10%, per Bloomberg. Telsa suspended production last month at the Bay Area plant after authorities ordered all nonessential businesses to close in response to the novel coronavirus outbreak. Axios has contacted Tesla for comment.

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Report: Tesla to cut employees' pay up to 30% and furlough workers

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