Tesla instructed Austin-based workers on its Model Y and Cybertruck production lines to remain home for the week of Memorial Day, according to three workers who spoke with Business Insider. The break is unusually long, the workers noted, as production lines were operational during the same period last year.
The electric vehicle manufacturer notified employees earlier this week. The hourly-paid workers were given the option to take paid time off or come in for cleaning and training but would not work on the production line. Since February, the workers have reported increasingly inconsistent schedules, with some being sent home early on multiple occasions.
In February, the Austin factory began limiting overtime hours, with management warning that excessive overtime could lead to disciplinary action. In April, Business Insider reported that Tesla had reduced production targets for the Cybertruck and moved some workers off the line. The company also halted Cybertruck production for three days in December.
Earlier this month, Trigo, a company that contracts workers for the Tesla factory, laid off 50 employees working at the Austin facility, according to a Worker Adjustment and Retraining Notification notice issued by the Texas Workforce Commission.
In April, Tesla reported a 13% drop in deliveries year-over-year. During the first quarter, Tesla produced nearly 26,000 more EVs than it delivered, despite a production decrease of nearly 100,000 vehicles compared to the previous quarter. Tesla’s stock has declined approximately 26% year-to-date. Elon Musk announced in March that Tesla would double its vehicle production rates in the US over the next two years.
The company released an updated version of the Model Y, its most popular vehicle, in January, but signs indicate it’s not selling as well as previous models. Tesla began offering discounts on the car in April and introduced a cheaper version of the EV on Tuesday.
As of March 20, the company had delivered fewer than 50,000 Cybertrucks, according to a voluntary recall notice.
— new from Business Insider
