Tesla, the U.S. electric car maker, plans to cut the number of jobs at its manufacturing plant in Fremont, California, to 2,500 jobs and keep the plant running. Earlier, the local sheriff’s office said the Tesla plant had not complied with a three-week “in-place” order to curb the spread of the new coronavirus. But Tesla plans to reduce the plant’s 10,000 on-the-job workforce to 2,500.
It is unclear when Tesla will begin cutting staff, or what steps the company will take to prevent employees from contracting or spreading the virus.
Six cities and counties in the San Francisco Bay Area issued an “in-place asylum” order Monday, effective early Tuesday morning. The order calls for all non-essential businesses to close and millions of residents to leave their homes only when they buy essential activities such as food. But Tesla continued to operate at full capacity during this period. That prompted the Alameda County Sheriff’s Office to tweet late Tuesday that Tesla’s auto manufacturing plant was “not an important business identified by the Alameda County Health Order.”
According to the sheriff’s office, this means that the Tesla plant should “maintain a minimum basic operation” according to the order, which means reducing employees to a minimum of basic work such as personnel and wages to combat the spread of the new coronavirus. There are currently 31 confirmed cases of new coronavirus in Alameda County.
“If they continue to operate, they violate California health and safety regulations,” Ray Kelly, a spokesman for the Alameda County Sheriff’s Office, said in an interview Wednesday. “They will have to deal with any problems that arise from this. “
“Given that it’s a big local company, with 10,000 employees coming to the plant every day, we’re not going to take that lightly,” Kelly stressed Wednesday.
In an email to employees, Tesla said the Department of Homeland Security had told the company it should be considered a “national critical infrastructure” rather than locally deemed “unnecessary.” But it’s unclear who the Department of Homeland Security told Tesla about the information. Neither the agency nor Tesla responded to multiple requests for comment.
In those emails, Tesla told employees that if they decide to stay at home, they must use their paid vacation days ‘if they take a temporary break, they must borrow the appropriate days of leave from other employees.’ As part of the cuts, it’s unclear whether Tesla will pay employees who are told to stay at home. Elon Musk, Tesla’s chief executive, has previously downplayed the threat of a new coronavirus in an email to employees, saying the threat of the virus is not comparable to the annual car accident.
Just hours before the “in-place” order was issued, Tesla officially announced that it had begun delivering the Model Y crossover. This is the company’s fifth electric car, which is expected to match sales with the Model 3 and possibly even surpass the Model 3. Tyson Jominy, an analyst at JD Power, a market research firm, points out that Tesla’s habit of delivering more electric vehicles at the end of each quarter, which ends On March 31, also helps explain why other automakers are suspending U.S. factories. Why did Tesla delay the plant?
“Keeping the plant running is a key task for Tesla right now,” he said. “Just when you need to increase production and deliverables, someone will tell you you can’t produce, which is a fire-breathing thing for any company, especially for Tesla. “
“They have high expectations of Model Y, and they can’t be blamed,” Chomini added. Unless the magistrate prevents people from entering, they will continue to produce and fund the company’s operations. “