Tesla, Inc. on Tuesday announced to it’s employees it would be furloughing the non-essential workers while also implementing a salary cut on those that aren’t furloughed due to the Coronavirus pandemic that had led to the shut down of numerous businesses all around the globe.

Although the company had made plans to resume its operations back by May 4th and bar any significant changes based on an email the company sent to its US employees by in-house counsel Valerie Capers Workman which Reuters was also able to view.

Tesla had suspended all of its operations at it’s San Francisco Bay Area vehicle as well as the New York solar roof tile factories since March 24th which was an effort to further manage costs and also achieve it’s long term plans.

Tesla did not immediately respond to a request for comment. While the Coronavirus pandemic had disrupted the automobile industry in the country, many US-based car makers were forced to furlough their US employees.

And as for Tesla, those employees that weren’t furloughed will get a pay cut which will start by April 13th and this cut will remain until the end of the second quarter according to the aforementioned email sent by the company to it’s employees.

The salary cut in the US is expected to go as follow: workers’ pay will be cut by 10%, directors’ salaries by 20% and vice presidents’ salaries by 30%. Comparable reductions will be implemented abroad.

As for those employees who cannot work from home but assigned to critical work onsite factories will now be furloughed with workers who are maintaining their healthcare benefits until production resumes back.

It’s worth noting the giant Electric automaker suspended its production at both factories since this past month right after it ended a standoff with authorities who were concerned about the spread of the deadly coronavirus disease. With the US-based auto factory employing some 10,000 workers with annualized production of slightly more than 415,000 units by the end of December 2019.

Tesla’s sole U.S. auto factory employs more than 10,000 workers, with annualized production of slightly more than 415,000 units by the end of December 2019.

And because of such mandatory suspension, there was an interruption on the planned productions f the Model Y SUV at these factories. The company’s demand for the Model Y SUV is expected to get high than other Tesla models combined accroeding to the company’s CEO, Elon Musk. The Model Y taps into strong demand for SUVs and is much less expensive than the high-end Model X.

The company on March 20th said it thought to have enough liquidity to successfully navigate the extended period of uncertainty with some $6.3 billion in cash at the end of the third quarter ahead of its recent $2.3 billion capital raise.

With a surprising first quarter delivery number on Thursday despite the Coronavirus outbreak, Tesla was able to impress it’s investors while further encouraging the production of the Model Y which as meant to go into production later on but operations had to be halted as the US now have more confirmed cases of the COVID-19 pandemic.