Tesla struggles with Elon Musk’s strict return-to-office policy

Tesla CEO Elon Musk enacted a strict return-to-office argumentation this spring, informing employees abruptly by email connected May 31 that they would request to "spend a minimum of forty hours successful the bureau per week." Anything else, helium suggested, was "phoning it in."

Three months since this edict, Tesla inactive doesn't person the country oregon resources to bring each its employees backmost to the office, according to radical who enactment for the institution successful the United States and interior documents seen by CNBC. The radical declined to beryllium named due to the fact that they were not authorized to speech to the property connected behalf of the company.

The return-to-office argumentation has besides caused a diminution successful morale, particularly among teams that allowed employees to enactment remotely arsenic needed earlier Covid-19.

In general, Tesla had been unfastened to distant enactment among employees successful bureau roles earlier the pandemic. As the company's workforce expanded successful caller years, the absorption was connected gathering retired planetary hubs and a caller mill successful Texas. It did not physique capable caller workspaces oregon get capable bureau instrumentality astatine existing facilities successful Nevada and California to bring each bureau employees and semipermanent contractors successful forty hours per week.

According to respective existent radical who enactment there, Tesla precocious wanted to bring its employees successful the San Francisco Bay Area to the bureau for 3 days per week, but a shortage of chairs, table space, parking spots and different resources proved excessively much. (Some of this was antecedently reported by The Information.) Instead, Tesla acceptable staggered in-office schedules backmost to 2 days per week.

Even elemental supplies similar dongles and charging cords person been successful abbreviated supply. On days wherever much employees are scheduled to enactment on-site, crowded conditions nonstop radical to instrumentality telephone calls outdoors, arsenic Tesla ne'er built capable league rooms and telephone booths to accommodate this galore employees successful attendance astatine once.

The institution is present surveilling employees' attendance, with Musk receiving elaborate play reports connected absenteeism.

In aboriginal September, interior records show, astir one-eighth of employees were retired connected a emblematic time successful Fremont, California, the location of Tesla's archetypal U.S. conveyance assembly plant. Across each of Tesla, that fig was lone somewhat better, with astir one-tenth of employees absent connected a emblematic workday.

The numbers person remained wrong that scope since March 2022, pre-dating Musk's orders, according to interior reports viewed by CNBC. Absenteeism spikes connected weekends and astir holidays, arsenic 1 mightiness expect.

Absenteeism astatine Tesla is measured utilizing information from workers badging into facilities, with unplanned absences divided by planned clip disconnected to tabulate regular totals, according to interior records and radical acquainted with the reports sent to Musk.

Not each employees are tracked the aforesaid way. Direct reports to Elon Musk bash not person their badge swipes counted for the interior reports, for example.

The return-to-office argumentation -- murky and informal arsenic it is -- has caused a important diminution successful morale among immoderate employees, according to interior messages seen by CNBC.

Before COVID-19 restrictions, Tesla managers mostly figured retired however overmuch distant enactment was due for their teams. Musk's hardline argumentation eliminated that state successful theory, though immoderate execs whitethorn inactive beryllium capable to carve retired deals for "exceptional" employees.

In aboriginal June 2022, close aft Musk mandated 40 hours connected tract for all, Tesla made steep cuts to its headcount. Employees who were antecedently designated arsenic distant workers but who could not relocate to beryllium successful the bureau 40 hours a week were fixed until September 30 to determination oregon instrumentality a severance bundle from Tesla.

About a week aft making that connection internally, Tesla HR asked radical who lived acold distant whether they planned to determination and enactment successful a Tesla bureau 40 hours a week. Some of those who said they were not definite if they could relocate, oregon who said they decidedly could not move, were dismissed successful June without warning, according to interior correspondence work by CNBC and 2 radical straight acquainted with the terminations.

The argumentation has besides depleted immoderate of Tesla's powerfulness to enlistee and clasp apical talent. At slightest a fewer well-liked employees discontinue due to the fact that they wanted much flexible arrangements, according to interior correspondence and 2 resignations confirmed by CNBC.

Some workers who lived acold from a Tesla bureau are present surviving hours distant from their families to conscionable the caller requirements, 1 worker told CNBC.

This worker said they disquieted astir of each astir migrant workers astatine Tesla, who could suffer their visas if the institution abruptly decides to terminate their roles implicit the shifting attendance mandate.

They besides disquieted astir however Tesla's closed-mindedness astir distant enactment could deed the company's diverseness goals.

In its 2022 diverseness report, released successful July, Meta disclosed that: "US candidates who accepted remote occupation offers were substantially much apt to beryllium Black, Hispanic, Native American, Alaskan Native, Pacific Islander, veterans and/or radical with disabilities," and "Globally, candidates who accepted remote occupation offers were much apt to beryllium women."

In Tesla's astir caller 2021 Impact Report, which it published successful May 2022, the institution boasted astir however it kept employees feeling connected adjacent arsenic they worked from distant offices.

The study said, "During the planetary pandemic, we focused a large woody connected expanding our assemblage engagement and ensuring our employees stayed connected. Specifically, we expanded our Employee Resource Groups (ERGs) and ensured our programming was accessible successful a distant enactment environment...We ensured our employees felt much heard and connected than ever earlier arsenic they pivoted to virtual events to beforehand inclusion crossed antithetic locations, carnal boundaries and clip zones."

The institution did not interruption retired numbers for however galore employees it allowed to enactment from distant locations earlier and aft the pandemic began, oregon however that impacted the demographic premix of its workforce.

Tesla did not respond to a petition for comment.