Tesla lifts Australia prices after dollar falls, flags stand-downs and salary cuts

Tesla has lifted the prices of its electric vehicle range in Australia because of the sharp fall in the local currency – as predicted last week – and also flagged staff “furloughs” (stand-downs) and salary cuts across the organisation.

The price rises for the Tesla range was widely anticipated because of the falling Australian dollar. And, as predicted by The Driven last week, it occurred on Good Friday, a public holiday.

The new price for a Tesla Model 3 Standard Range Plus jumps from $A68,000 to $A73,900. The price for the long range Model 3 goes to $A87,900, while the performance version is $A95,900.

On-road costs such stamp duty, registration and other charges can add thousands of dollars depending on the state. The difference in on-road costs for the Model 3 SR+ between various state and territories is up to $A4,500 between the cheapest (ACT) and the most expensive (W.A).

The Model S is now priced at around $A130,900, up from $A125,000, with the peformance version now offered at $A145,900 – before on roads. And the Model X is now priced at $A144,900, up from around $A134,000, with the performance version going at $A159,900 before on roads.

The price rises came into effect just as Tesla warned the company’s 26,000 staff on salary cuts and furloghs (stand-downs) as a result of the decrease in manufacturing and deliveries because of the lock-downs caused by the Covid-19 pandemic.

An email to staff late last week advised that from Monday, April 13, U.S. employees would suffer salary cuts of 30 per cent for vice presidents and above, 20 per cent for directors and above, and 10 per cent for other staff. This will be reflected in non-US employees, such as Australia.

These reductions are expected to be in place until the end of June.

It’s worse news for employees who cannot work at home and have not been assigned to critical work onsite – mostly on the manufacturing plants that have been shuttered – and they will be furloughed.

That means they remain an employee of Tesla (without pay) and retain their halthcare benefits, but they won’t report to work until the furlough ends, which management expects to be May 4, although that depends on various decisions by state and federal authorities.

It is believed this does not apply to any Australian workers.

Despite this, Tesla is expected to be in reasonable shape given its recent fund-raising efforts, and it says it has around $7 billion in cash. Other car-makers are also suffering, and may put their EV investments on hold as they try to retain cash given the lack of sales.