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