Tesla Is Having Trouble Paying Its Rent

In a leaked email, Elon Musk's carmaker is asking landlords to lower its rent.

Tough Times

Elon Musk-led electric automaker Tesla is feeling the economic devastation of the coronavirus pandemic.

The company is contacting some of its landlords at dealerships and service centers to try and talk down rent prices, The Wall Street Journal reports. In a leaked email, the company asks to renegotiate their leases "so we can continue to partner and work together to ensure a continued and mutually beneficial relationship."

Corporate Solidarity

The move makes Tesla the latest company to join the ranks of others like WeWork and the Cheesecake Factory that have had to skip rent payments as they grapple with severe drops in revenue.

Tesla already went through a round of layoffs and furloughs after the coronavirus forced it to stop production.

Asking Nicely

Tesla is hoping to convince its landlords that getting any rent payments, even if they're reduced, is better than forcing tenants out and getting nothing.

"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," reads the email reviewed by the WSJ. "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."

READ MORE: Tesla Seeks Rent Savings Amid Coronavirus Crunch [The Wall Street Journal]

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