Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Tesla says it took government payroll benefits to offset coronavirus shutdowns

Published 07/28/2020, 08:48 AM
Updated 07/28/2020, 12:20 PM
© Reuters. FILE PHOTO: The Tesla logo is seen on a car in Los Angeles
TSLA
-

(Reuters) - Tesla Inc (O:TSLA) received payroll related benefits from the government in the first half of the year to help reduce the impact of the coronavirus pandemic on its business, the electric carmaker said in a filing on Tuesday.

The company, whose Chief Executive Officer Elon Musk has spoken against further government aid as Congress debates another round of stimulus, said that along with cost cuts, the benefits had offset almost all of its costs due to the idling of factories in this year's lockdowns. (https://

Tesla's only U.S. vehicle factory — in California, where most of its cars are produced — was shut down for some six weeks in the second quarter ended June after an initial standoff with local authorities.

Reuters could not immediately verify which government assistance the company received and in what country.

Shares of the company were down 0.26% in midday trading at $1,539, after earlier falling as much as 1.4%.

Tesla and its subsidiary SolarCity do not appear on a list by the U.S. Small Business Administration, which issued forgivable loans to millions of companies in an effort to prevent widespread layoffs.

Tesla did not immediately respond to a request for comment.

"As part of various governmental responses to the pandemic granted to companies globally, we received certain payroll related benefits which helped to reduce the impact of the COVID-19 pandemic on our financial results," the company said in its regulatory filing.

Tesla's billionaire CEO Musk said in a post on Twitter on Friday that another U.S. government stimulus package "is not in the interests of the people."

© Reuters. FILE PHOTO: The Tesla logo is seen on a car in Los Angeles

U.S. Republicans and Democrats are in the midst of debating a second massive coronavirus aid package to prop up the economy and help millions of Americans who have lost their jobs during the pandemic.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.