Tesla is reportedly trying to save on rent amid widespread coronavirus closures by renegotiating its leases

Tesla is reportedly trying to save on rent amid widespread coronavirus closures by renegotiating its leases

FILE PHOTO: A view of Tesla Inc's U.S. vehicle factory in Fremont, California, U.S., March 18, 2020. REUTERS/Shannon Stapleton/File Photo

Reuters

FILE PHOTO: The view of Tesla Inc's U.S. vehicle factory in Fremont, California

  • Tesla is reportedly looking to cut costs and asked its landlords to reduce rent as the coronavirus pandemic overwhelms the US and forces store and service center closures.
  • Tesla shut its San Francisco factory in March but hopes to re-open as soon as the region's shelter-in-place measures end.
  • The company also cut salaried employees' pay and furloughed non-essential workers as a way to cut costs during the pandemic.
  • Visit Business Insider's homepage for more stories.
Tesla recently approached some of its landlords and requested lower rent payments as the company tries to find avenues to cut costs amid the coronavirus pandemic, according to a report by The Wall Street Journal.The electric car maker shut down its San Francisco factory in March after the region issued shelter-in-place orders, but the company said it had enough cash on hand to get by for a while.
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Since then, the company cut salaried employees' pay and furloughed non-essential workers, in addition to seeking out rent savings from landlords at its stores and service centers.

"The rapid world pandemic that is now affecting our country has led Tesla to make strategic decisions to ensure the company's long term success and growth," Tesla wrote to landlords, according to The Wall Street Journal. "As a result of the increasing restrictions on our ability to conduct business, we would like to inform you that we will be reducing our monthly rent obligations effective immediately."

Tesla did not respond to a Business Insider request for comment.
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Read more: Tests that can tell if you're immune to the coronavirus are on the way. Here are the companies racing to bring them to the US healthcare system.

Tesla plans to re-open its US facilities in San-Francisco May 4, a day after the shelter-in-place orders are scheduled to be lifted, according to the Journal, however, the shutdown could be extended further.Other carmakers such as Honda and BMW also shutdown factories, in addition to international facilities like Ford and Toyota. However, Tesla's Shanghai factory was re-opened February 9.
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