https://www.theguardian.com/world/2020/may/10/elon-musk-threatens-to-move-
tesla-hq-out-of-california-over-covid-19-restrictions
Elon Musk threatens to move Tesla HQ out of California over Covid-19
restrictions
Reuters
Published on Sat 9 May 2020 22.25 EDT
Tesla is suing local authorities in California as the electric carmaker
pushes to reopen its factory there and chief executive Elon Musk threatens
to move the company´s headquarters to Texas or Nevada.
Musk has been pushing to reopen Tesla´s Fremont, California, factory after
Alameda County´s health department said the carmaker must not reopen because
local lockdown measures to curb the spread of the coronavirus remain in
effect.
Tesla filed a lawsuit against the county on Saturday, calling the continued
restrictions a "power-grab" by the county since California´s governor had
said on Thursday that manufacturers in the state would be allowed to reopen.
The company said Alameda was going against the federal and California
constitutions, as well as defying the governor´s order, in the lawsuit filed
in San Francisco federal court.
Alameda County, where the Fremont factory is located, is scheduled to remain
shut until the end of May, with only essential businesses allowed to reopen.
County officials did not immediately respond to a request for comment on the
lawsuit.
The outspoken Musk also took to Twitter on Saturday to complain and
threatened to leave the state. "If we even retain Fremont manufacturing
activity at all, it will be dependent on how Tesla is treated in the
future," he tweeted. The San Francisco Bay area facility is currently
Tesla´s only US vehicle factory.
[Tweet] "Frankly, this is the final straw. Tesla will now move its HQ
and future programs to Texas/Nevada immediately. If we even retain Fremont
manufacturing activity at all, it will be dependen on how Tesla is treated
in the future. Tesla is the last carmaker left in CA.
- Elon Musk (@elonmusk) May 9, 2020"
Alameda County said on Saturday that it has been working with Tesla to
develop a safety plan that "allows for reopening while protecting the health
and well-being of the thousands of employees" who work at the factory, and
that it looks forward to coming to an agreement on a safety plan very soon.
Fremont mayor Lily Mei expressed concern about the potential economic
implications of continuing the shelter-in-place order without provisions for
manufacturers such as Tesla to resume. Mei on Saturday urged the county to
work with businesses on "acceptable guidelines for re-opening".
Musk had told employees on Thursday that limited production would restart at
Fremont on Friday afternoon. Tesla builds more than 415,000 cars a year at
the Fremont plant and moving the entire production facility would be a
massive undertaking. Dan Ives, a Wedbush analyst, on Saturday estimated it
could take the company 12 to 18 months to relocate production.
The threat to relocate the facility comes as Tesla aims to ramp up
production at Fremont of its Model Y sport utility vehicle, the carmaker´s
most profitable vehicle to date.
Musk, who sparred with California officials in March over whether Tesla had
to halt production at Fremont, had criticised the lockdown and stay-at-home
orders, calling them a "serious risk" to US business and "unconstitutional".
Tesla shares have risen 127% since 18 March, their recent closing low,
including a 16.8% gain in the last trading week to close at $819.42 on
Friday.
David Roden - Akron, Ohio, USA
EVDL Administrator
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