Elon Musk Wanted Tesla Employees Back In Office — But Is The Transition Working?

Tesla Inc TSLA CEO Elon Musk’s mandatory back-to-office policy is facing hiccups as the automaker’s employees face accommodation and logistical challenges.

What Happened: The return of employees to the workplace is proving to be a difficult obstacle to maneuver due to a shortage of office furniture and resources such as parking space at the company’s San Francisco Bay Area location, reported CNBC.

The shortages extend to ancillaries such as dongles and charging cables with crowded conditions reportedly forcing people to attend phone calls outdoors because Tesla never built enough conference rooms and phone booths.

While Tesla wanted to bring employees to its San Francisco office three days per week, the shortages meant that it had to set staggered in-office schedules to two days per week, according to the CNBC report.

See also: How To Buy Tesla (TSLA) Stock

Why It's Important: In June, Musk confirmed an email doing the rounds that asked employees to work 40 hours a week from an office or leave Tesla.

The shortage of equipment at Tesla’s offices was reported earlier in June. Workers at the company’s Fremont office encountered a surprising lack of readiness. Employees also faced Wi-Fi issues, with the signals being too weak to use efficiently. 

Employee morale at the company has dwindled, according to internal messages seen by CNBC.

Remote employees were asked by Tesla human resources whether they planned to move and work in an office 40 hours a week. Those that refused or said were unsure were fired in June without warning, reported CNBC, citing internal correspondence and people familiar with the matter.

The lack of a work-from-home option at Tesla has sapped the automaker’s ability to recruit and retain top talent. At least two resignations were confirmed due to such issues by CNBC.

Price Action: On Wednesday, Tesla shares closed 3.6% higher at $302.61 in the regular sessions and rose 0.5% in extended trading, according to data from Benzinga Pro.
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