DRAPER — While electric cars and the activities of CEO Elon Musk rule most headlines about Tesla, the company is also in the solar energy business and last week announced it would eliminate 100 positions from a Draper office that is part of its "energy support" division.
A company spokesman said Tesla Energy would work to place the impacted workers in other positions with the company.
"As we continue to grow our energy business, we are consolidating the Energy Support team in one centralized location, which will save money and enable our colleagues to work together more effectively and efficiently," the spokesman said in a statement. "This decision will impact approximately 150 employees, with 100 of the affected employees located in our Draper, Utah, location. All affected employees will have the opportunity to apply for a transfer to other roles within Tesla.
"We understand these changes can be difficult for those who are impacted, and we will be providing employees with transition benefits and assistance during this process.”5 comments on this story
The Draper facility was acquired in 2016 when Tesla acquired SolarCity in a transaction worth about $2 billion in stock. Musk was close to the company, which launched in 2006, as both the financer of the effort and the cousin of its two founder brothers, Lyndon and Peter Rive. Tesla Energy offers both solar collection systems and a Tesla-designed energy storage system called the Powerwall.
A recent Forbes article on Tesla Energy noted the company had reduced its workforce by about 9 percent earlier this year and was experiencing a decline in solar installation volumes and delays in new product launches. Tesla Energy accounted for about 10 percent of Tesla's overall revenues in the second quarter of 2018, or about $375 million.
At the close of regular trading Wednesday, Tesla stock was trading at $271.78 for a market capitalization of $43.38 billion.