Tesla has announced a salary reduction plan. However, the salary reduction measures in China will be different, it said.
This decision was made after Tesla's North American plant was forced to shut down, and Tesla expects the Fremont plant in California to restart operations on May 4. However, salary reduction measures are expected to be implemented by the end of the second quarter of this year.
According to an email sent by Tesla's North American personnel department, starting April 13, Tesla will temporarily take pay cuts to cut expenses. Specifically, the salary of the vice president and above is reduced by 30%, the salary of the director and above is reduced by 20%, and the salary of all other employees is reduced by 10%.
For employees outside of North America, the corresponding salary reduction measures are based on the premise of the local leadership team following the local labor regulations and employment policies.
In response to how Tesla China implemented the corresponding salary reduction policy, Tesla told Yicai.com: "The measures in China will be different, and the official reply will be announced later."
Tesla's Chinese super factory has been resumed in mid-February this year, but industry insiders told Yicai.com that it is not easy to fully start mass production because some parts of Tesla's supply chain still depend on overseas imports.
"The automotive supply chain is very long. Without one component, the entire vehicle may not be assembled." A senior executive in the automotive industry told Yicai.com.
In the two months after the resumption of work, Tesla has not made any further explanation on the specific situation of resumption of work.
Last week Tesla announced better-than-expected first-quarter delivery data. In the first quarter of this year, Tesla produced more than 100,000 electric vehicles, an increase of 33% year-on-year, and delivered about 88,400 vehicles, an increase of nearly 15% year-on-year, setting the best first-quarter performance since record.
However, due to the simultaneous decline in supply and demand, Tesla's performance in the second quarter faced huge uncertainties. Even so, some analysts still believe that Tesla may still exceed the overall growth rate of the automotive industry by 25% to 30%.