Tesla is dismissing contractors from its California and Nevada factories, sources say

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  • Tesla is letting go of contract workers from its U.S. car and battery plants, sources told CNBC. They estimated the cuts will affect hundreds.
  • Health orders — implemented to curb the spread of COVID-19 — have forced the electric vehicle maker to wind down new vehicle production.
  • The cuts follow Tesla’s first-quarter vehicle production and deliveries report, which pleased investors — the company delivered approximately 88,400 vehicles and produced 103,000 in Q1.

Tesla is letting go of contractors from its U.S. car and battery plants, according to three workers and correspondence shared with CNBC.

The company is cutting contractors from its workforce, both in its vehicle factory in Fremont, California, and at the Gigafactory outside of Reno, Nevada, where Tesla makes the signature battery packs that power its electric vehicles and energy storage products. The cuts affect hundreds, according to estimates from the people familiar with the move, who asked for anonymity because they are not authorized to talk to press about internal matters.