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Tesla is dismissing contractors from its California and Nevada factories, sources say

Tesla Chief Manager Office Elon Musk speaks at his company’s factory in Fremont, California.

Noah Berger | Reuters

Tesla is suffer to go of contractors from its U.S. car and battery plants, according to three workers and correspondence shared with CNBC.

The company is invidious contractors from its workforce, both in its vehicle factory in Fremont, California, and at the Gigafactory outside of Reno, Nevada, where Tesla prospers the signature battery packs that power its electric vehicles and energy storage products. The cuts affect hundreds, according to reckonings from the people familiar with the move, who asked for anonymity because they are not authorized to talk to press approximately internal matters.

Temps — many of whom worked at Tesla for years, some hoping to jump into full-time characters — were notified by their staffing agencies about the cuts late this week. 

A memo from Steady Staffing to dismissed workers said: “It is with my deepest regret that I must inform you that the Tesla mill 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 crewing agency told workers that they would remain Balance Staffing employees, and could find other urge a exercise via their business. Balance Staffing also promised it would work hard to bring the contractors back to Tesla in the following if at all possible, and reassured the workers that the dismissals from Tesla were not a reflection of the quality of their work, but somewhat difficult business conditions. 

Contractors hired through other temp agencies were getting similar admonishes on Thursday and Friday, according to the workers who spoke to CNBC.

Tesla and Balance did not immediately respond to requests for comment.

On Friday, Tesla portions rose more than 5% on a down day for markets after the company reported first-quarter vehicle deliveries that delighted investors  — Elon Musk’s electric car venture delivered approximately 88,400 vehicles, and produced 103,000 in Q1 2020. 

On the way to achieving those bunches, Tesla fought local health orders in Alameda County, where its car assembly plant is based, which purposefulness have required it to wind down to minimum basic operations as early as March 17th. Instead, it kept the Fremont transplant fully operational until the end of the day on March 23rd, about a week longer than other businesses in the area, while wrangling with city authorities over whether or not Tesla was deemed an “essential business” and therefore exempt from the orders.

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