Market Overview

Tesla To Reduce 75% Of All On-Site Staff At Nevada Gigafactory Due To Pandemic

Tesla To Reduce 75% Of All On-Site Staff At Nevada Gigafactory Due To Pandemic

Tesla Inc. (NASDAQ: TSLA) is cutting three-fourth of its on-site staff at the Nevada gigafactory due to the impact of the novel coronavirus (COVID-19) outbreak in the country.

What Happened

Austin Osborne, manager for the Storey County, where the Tesla manufacturing plant is located, gave the update in a statement late Thursday.

"Tesla has informed us that the Gigafactory in Storey County is reducing on-site staff by roughly 75% in the coming days," Osborne said, as earlier reported by Reuters.

The county manager added that all companies at the Tahoe Reno Industrial Center (TRIC) "are taking the COVID-19 matter seriously."
"Checking employee temperatures, creating central access, allowing remote work, maintaining workstation distance, and others are occurring," Osborne added.

More details weren't immediately available, including the number of workers affected by the decision. It's also not clear how long the reduction will last, or if the workers will continue to receive pay and benefits.

Why It Matters

Tesla's battery supplier Panasonic Corporation (OTC: PCRFY), had last week announced that it would suspend operations at the Nevada plant.

As reported by the Reno Gazette-Journal, the company said it would ask all 3,500 of its workers to stay at home for at least the next two weeks.

Tesla earlier this month shut down production at its Fremont and New York factories as authorities asked non-essential businesses to halt operations to curb the spread of the coronavirus.

The company has instead suggested that it will make ventilators at the factories for critically-ill patients who require oxygen support.

Price Action

Tesla's shares closed 2.06% lower at $528.16 on Thursday. The shares traded further 0.22% lower at $527 in the after-hours session.

Photo Credit: Public domain photo via Wikimedia.


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