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Tesla sends some laid-off workers new severance offers after Elon Musk said some were 'incorrectly low' the first time

A red Tesla outside a Tesla showroom.
Tesla gave some workers a new severance offer with additional pay and health insurance.JOHN THYS / Getty
  • Tesla sent some laid-off staff a new severance offer with additional pay and health insurance.

  • The initial severance offer included two months pay and health insurance coverage, two workers said.

  • Elon Musk has said he plants to cut more than 10% of Tesla's workforce.

Some laid-off Tesla workers received new severance offers that included more money and longer coverage of benefits on Thursday night.

It continues a tumultuous week for Tesla workers, some of whom missed the layoff email before heading to work on Monday and only realized they were out of a job after a badge scan from security. Others told Business Insider they didn't receive any severance information within the 48 hours Tesla had said to expect it.

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Tesla CEO Elon Musk appeared to acknowledge the company had initially sent out faulty severance packages. On Wednesday, Musk sent a companywide email to current Tesla employees saying that "some severance packages are incorrectly low" and the company was working to correct the mistake.

Unlike early severance offers that were sent to some workers on Tuesday night, the new packages appear to vary between employees.

Two workers who'd initially received a severance offer for two months pay and two months of health insurance coverage were notified on Wednesday that their separation agreement had been canceled by Tesla and that an updated agreement would follow, the workers told BI. Within a few hours, the workers received severance offers with slightly higher pay, those workers said.