Tesla can’t open California plant due to coronavirus crisis

Elon Musk aimed to re-open Tesla’s Fremont, California on Friday afternoon. One o’clock in the afternoon. On Friday, Alameda County said it was not yet safe.

Tesla “should not reopen,” the county said in a statement. “Restoring all daily activities is also a threat of a rapid increase in cases soon and will jeopardize the relative stability seen in our health and hospital systems.”

Musk plans to reopen Revised statewide guidance From government Gavin Newsom, whose administration on Friday relaxed restrictions on manufacturing. But counties are allowed to enforce strict rules.

Six Bay Area counties, including Alameda, halted nonsensical manufacturing in an elaborate order on 16 March. That order was slightly revised and extended to run at least until the end of May, but local restrictions remain in force on the non-manufacturing sector.

Alameda County said on Friday it informed Tesla that the company Criteria not met The closure was set for a gradual relaxation of the rules on May 4, although the county did not state which criteria were not met.

As county orders now stand, Tesla cannot start making cars at its Fremont plant until May 31.

Musk has not welcomed public health orders related to coronovirus.

He deferred the original March 16 order until Fremont Police pressed his company to close the plant. The company had argued that electric vehicles were required for national security, and the plant was kept open for several days before closing on 23 March. In a call with stock analysts, he described the order to stay at home to slow its spread. Outbreak “Fascist.”

As of Friday, Alameda County had reported 1,897 coronovirus cases and 69 deaths.

Local police departments are responsible for enforcing county orders. A Fremont Police spokesman said via email on Friday that “we have no indication or formal complaint that they are manufacturing the vehicles today.” … It is our hope that they will continue to follow the health system.

Tesla is eager to reopen the factory, which employs 10,000 people, most of them on furloughs. Although Tesla reported profit in the first quarter of this year, analysts expect disappointing results for the current quarter. The entire automotive industry is in. Is a bad way Many showrooms closed and inventory accumulated.

Lack of profit has still not proved to be a problem at Tesla. Even though the company has never made an annual profit, its stock remains at a high level, trading above $ 800 billion, for a market value of about $ 150 billion, compared to other automakers. I have more.

But cash is an issue.

Although Tesla took in $ 8 billion in cash at the end of March, it is unclear how much the company now has. Asked during an April 29 conference call with analysts about the current cash balance, its chief financial officer refused to respond, and Musk launched into a polemic on US independence and “fascist” government orders.

The company opened a new plant in Shanghai in December, which should bring some relief. The plant is churning on cars but was recently closed for several days. Media in China reported a lack of essential car parts. Tesla did not respond to emails or phone calls seeking comment.

Cash generated through Shanghai production and sales in China may be insufficient to meet any cash crisis. Because Tesla has borrowed more than $ 1 billion from Chinese banks and its agreements with Chinese authorities have raised it from shipping cash to the U.S. Till the payment of debt is stopped.

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