Amid lockdown dispute, Musk says he will move Tesla out of California

(Reuters) – Tesla Inc’s (TSLA.O) chief government Elon Musk tweeted on Saturday that Tesla will move its headquarters and future packages to Texas or Nevada from California instantly.

FILE PHOTO: Tesla Inc CEO Elon Musk speaks at a gap ceremony for Tesla China-made Model Y program in Shanghai, China January 7, 2020. REUTERS/Aly Song/File Photo

“If we even retain Fremont manufacturing activity at all, it will be dependen (sp) on how Tesla is treated in the future,” he wrote on Twitter, referring to the ability within the San Francisco Bay space that’s Tesla’s solely U.S. car manufacturing facility.

Musk additionally tweeted about suing Alameda County, California, after its well being division mentioned the electrical carmaker should not reopen the Fremont manufacturing facility as native lockdown measures to curb the unfold of the coronavirus stay in impact.

Alameda County mentioned on Saturday that it has been working with Tesla to develop a security plan that “allows for reopening while protecting the health and well-being of the thousands of employees” that work on the manufacturing facility and that it seems ahead to coming to an settlement on a security plan very quickly.

Musk had advised staff on Thursday that restricted manufacturing would restart at Fremont on Friday afternoon.

Tesla builds greater than 415,000 vehicles per 12 months on the Fremont plant and transferring the complete manufacturing facility could be a large endeavor.

Dan Ives, a Wedbush analyst, on Saturday estimated it may take the corporate 12 to 18 months to relocate manufacturing.

The risk to relocate the ability additionally comes as Tesla goals to ramp up manufacturing at Fremont of its Model Y sport utility car, the carmaker’s most worthwhile car thus far.

California Governor Gavin Newsom had mentioned on Thursday that producers within the state could be allowed to reopen. But Alameda County, the place the Fremont manufacturing facility is situated, is scheduled to stay shut till the top of May with solely important companies allowed to reopen.

A county official mentioned on Friday that its well being division has had many discussions with the corporate and really helpful that Tesla wait not less than one other week to watch an infection charges and focus on protected methods to renew manufacturing.

Musk, who sparred with California officers in March over whether or not Tesla needed to halt manufacturing at Fremont, has criticized the lockdown and stay-at-home orders, calling them a “serious risk” to U.S. enterprise and “unconstitutional.”

Tesla shares have risen 127% since March 18, their current closing low, together with a 16.eight% acquire within the final buying and selling week to shut at $819.42 on Friday.

Reporting by Sabahatjahan Contractor in Bengaluru, Tina Bellon and Sinéad Carew in New York; Editing by Daniel Wallis and Chris Reese

Our Standards:The Thomson Reuters Trust Principles.

Source link

Featured Advertisements


Leave a Reply

Your email address will not be published. Required fields are marked *

Featured Advertisements