Tesla says it received govt payroll benefits to help reduce impact of COVID-19 lockdown

Electric carmaker Tesla on July 28 reportedly said that the company received payroll-related benefits from the government in the first half of the year to help reduce the impact of the deadly coronavirus pandemic on its business. While it is still not clear which government assistance the company received and in what country, a Tesla spokesperson reportedly said that ‘certain payroll-related benefits’ helped to reduce the impact of the lockdown on the company’s financial performance. 

Tesla, in its regulatory filing, reportedly informed that along with cost cuts, the benefits of the payroll had offset almost all of its costs due to the idling of factories in this year’s COVID-19 lockdown. The company’s only US vehicle factory in California was shut down for around six months in the second quarter after an initial standoff with local authorities. It was noted that Tesla and its subsidiary SolarCity were not included in a list by the US Small Business Administration, which issued forgivable loans to millions of companies in an effort to prevent widespread layoffs. 

READ: Bernie Sanders Slams 'hypocrite' Elon Musk For Opposing US Govt's Stimulus Package

Musk criticises stimulus package 

Tesla’s regulatory filing regarding the government payroll comes after the company’s CEO Elon Musk spoke against another US government stimulus package. The tech billionaire argued that government aid is not in the best interest of the people. While taking to Twitter, Musk claimed that the stimulus package has ‘special interest’. 

READ: Elon Musk Opposes US Govt's Stimulus Package, Says 'it Is Not In Best Interests Of People'

In a series of tweets, the SpaceX CEO said that he would like to see only direct payments included in the new relief bill. Although he criticised the stimulus package saying that it was more beneficial to a select few, he said he supported the concept of universal basic income and the goal of government should be to maximize the happiness of the people. Furthermore, he also slammed the government for the economic package and alleged that the packages come with vested interests.

Meanwhile, Republican US Senate Majority Leader Mitch McConnell has said that the US Government has put in place the “framework” for CARES 2 that would deliver “more relief” to the US citizens. The CARES 2 will propose $3 trillion worth of economic support for individuals and businesses struggling with the recession prevailing in the country due to a continuous rise in the COVID-19 cases. The package aims at sending direct payments to people in August to mitigate their personal and financial needs.

(Image: AP)

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READ: Tesla Makes $104M Profit In 2Q Despite Factory Shutdown