NAfter Alameda County health officials warned Tesla on Friday not to reopen his car factory in Fremont, California, Tesla boss Elon Musk rages on Twitter. Tesla will withdraw its corporate headquarters and possibly also its production.
“Frankly, that’s the last straw,” Musk writes on Twitter. “Tesla will now move its headquarters and future programs to Texas / Nevada immediately.” Production in Fremont, California, is also at stake. This will depend on “how Tesla will be treated in the future”.
This is economically tragic for California. Tesla is the last automaker to still produce in this state. 10,000 employees work in Fremont, which Musk is now using openly as a threat.
Tesla had to temporarily shut down its only US factory on March 23 due to the corona pandemic to meet the lockdown that was felt across California. California’s governor Gavin Newsom, however, announced on Thursday that factory openings in the state would be allowed again on Friday.
District bans production
Tesla had therefore planned to start production again on Friday afternoon. In an email to the employees, Musk announced that operations would be restricted, with 30 percent of the normal workforce per shift.
However, the Alameda district refused to consent. The county had decided to extend the shutdown until the end of May, except for essential businesses. As of Friday, the district had reported more than 2,000 people infected with corona, 71 of whom died from the disease.
Tesla will immediately file a lawsuit against the Alameda district, Musk then wrote on Twitter. “Alameda’s unelected & ignorant” interim health official “acts against the governor, the president, our constitutional freedoms & simply against common sense!”
Meanwhile, the Mayor of Fremont, Lily Mei, expressed about the dispute. It is “increasingly concerned about the possible effects on our regional economy”, said in a statement. The city encourages the district to partner with our local businesses to develop acceptable guidelines for reopening the local economy.
“As we have been doing for more than a decade, the city is ready to support Tesla as soon as the company is able to resume automotive production and to commit to a thoughtful, balanced approach to this effort, one that will benefit ours Community in Fremont remains safe, ”it continues.
Tesla produces the 3, S, X, and Y models at its Fremont facility. On April 13, the company cut wages for all of its U.S. employees and sent most of the non-home workers on unpaid vacation. What would happen to the approximately 10,000 workers at the Fremont plant if Tesla relocated operations from the state, Musk tweeted, was unclear.
Fighter against the lockdown
Musk had previously spoken out against the lockdown with harsh words. Most recently, during a conference call to present the balance sheet figures at the end of April, he scolded so much against the California restrictions on going out in the corona crisis, which he called “fascism”, that the call had to be interrupted.
He believed that the measures would lock people in their homes and violate their rights. “The violent detention of people in their homes violates all their constitutional rights.” Whoever wanted to stay at home should not be forced to go out, he said.
“But telling people that they can’t leave their house, that they’ll be arrested, that’s fascism, that’s not democratic,” continued Musk, with a distorted account of the California measures. In fact, people could leave their homes to do necessary errands or exercise. At the end of his tirade, the Tesla boss demanded that people be given “their goddamn freedom”.
Musk mostly uses the short message service Twitter for his failures. In the past week, he had indicated that he considered the market value of his own company to be too high. In the meantime, the value fell by more than ten percent.
Two years ago, Musk got into trouble with the SEC, because of his tweets. In the end, there was an agreement that he had to have the tweets relevant to the share approved in advance by the company.
At the beginning of May, he announced on Twitter that he wanted to sell his property, including his villas. “I will sell almost all of my worldly possessions. I won’t own a house, ”Musk wrote.
Tesla is currently preparing a production in Grünheide near Berlin in Brandenburg. The factory is scheduled to start operating in 2021. It should be designed for up to 12,000 employees and produce up to 500,000 electric cars a year.