Tesla’s (TSLA) stock price keeps climbing this morning as the automaker seeks to renegotiate its rent rates based on emails sent to its landlords.
As we reported yesterday, Tesla’s stock has been recovering extremely well from its drop following the broader market correction triggered by the coronavirus pandemic.
Tesla’s stock is surging again today; it’s up more than 30% over the last two days.
The surge is occurring as we learn that Missouri offered $1 billion in incentives in a formal bid for Tesla’s Cybertruck Gigafactory.
Even if the plant doesn’t end up in Missouri, it bodes well for Tesla’s effort to secure an important incentive package for the new factory.
Also, we learn that Tesla is trying to renegotiate its rent at some locations in a new cost-cutting effort amid the coronavirus pandemic.
As we previously reported, Tesla was forced to close many stores due to shelter-in-place orders across the world, and it recently furloughed a majority of its sales force.
Tesla still has to pay rent on those locations even though it can’t use them right now.
The Wall Street Journal obtained an email that Tesla has sent to landlords in which the automakers says it intends to reduce its rent:
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. 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.
The company says that it wants to discuss other options “so we can continue to partner and work together to ensure a continued and mutually beneficial relationship.”
As of now, Tesla is still taking new orders online and its service division is still working, but the automaker will have limited operations until it can reopen its Fremont Factory, which it currently aims to do on May 4 after the local shelter-in-place order is set to be lifted.
Tesla is not the only company in a difficult situation when it comes to rent amid the current crisis. Several other businesses, like WeWork and Cheesecake Factory, have told their landlords that they won’t be able to pay their rent this month.