Tesla May Get Another Year to Meet Employment Quota in N.Y.

(Bloomberg) -- The pandemic may buy Tesla Inc. more time to meet an employment quota for its state-subsidized solar factory in Buffalo, New York.

Officials are considering delaying state hiring targets for one year, according to a spokeswoman for New York’s economic development agency.

Tesla had until Thursday to employ 1,460 people at the plant to avoid paying a $41.2 million penalty. In a filing Thursday, the company said it had exceeded its obligations before New York issued its stay-at-home order, forcing the company to suspend most operations at the plant. Tesla also said it expected the state to push back its deadline.

The plant is crucial to Tesla’s solar business. It makes solar roof tiles, which the company has struggled to mass-produce. Tesla said Wednesday the plant reached a “significant milestone” last quarter and produced enough roof tiles for up to 1,000 homes in a single week.

©2020 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.