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Tesla has reportedly asked landlords for rent discounts as it tries to cut costs during the coronavirus crisis. The electric-car maker has told at least some of its landlords that it is cutting its monthly rent obligations because of the “increasing restrictions on our ability to conduct business” amid the pandemic, The Wall Street Journal …
Tesla has reportedly asked landlords for rent discounts as it tries to cut costs during the coronavirus crisis.
The electric-car maker has told at least some of its landlords that it is cutting its monthly rent obligations because of the “increasing restrictions on our ability to conduct business” amid the pandemic, The Wall Street Journal reported Monday.
Silicon Valley-based Tesla told landlords that it wants to talk about options so it “can continue to partner and work together to ensure a continued and mutually beneficial relationship,” according to the paper. The company has said it primarily leases space for its offices, service centers, retail locations and other parts of its operations.
Tesla did not immediately respond to a request for comment Tuesday morning.
The revelation came about a week after Tesla announced plans to furlough employees who cannot work from home and cut pay for salaried employees amid the coronavirus pandemic.
Restrictions aimed at stopping the spread of the virus have led the company to halt production at its factories in California and New York. It has also reduced the number of workers at its so-called Gigafactory in Nevada.
Tesla isn’t the only big company to cut back on rent during the virus crisis. The Cheesecake Factory restaurant chain told landlords last month that it would not make April rent for its eateries. Movie theater chain AMC also recently informed landlords it would stop paying rent this month.
