Tesla Pushes Ahead with Factory Restart Despite State Opposition? ... CEO Musk Says "Will Move Headquarters"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] American electric vehicle manufacturer Tesla has expressed its determination to resume factory operations despite opposition from the state government. This is in response to the state government's request to extend the shutdown due to the spread of the novel coronavirus (COVID-19). CEO Elon Musk strongly pressured the authorities, saying, "Tesla is the only remaining automaker in California," and "We will move our headquarters to Nevada or Texas."

According to CNBC on the 10th (local time), Tesla recently posted a message titled "Return to the Workplace" on its internal bulletin board and began procedures to restart the factory. Tesla plans to produce Model 3, Model S, and Model X vehicles at its Fremont factory in California this week.

Tesla stated the basis for resuming factory operations, saying, "The Fremont factory falls under the essential workforce guidelines mentioned by California Governor Gavin Newsom, and as critical national infrastructure, production must resume."

It also added, "At least three neighboring counties in similar situations have already resumed economic activities."

In fact, California allowed some retail stores such as bookstores and flower shops to reopen starting from the 9th. Accordingly, CEO Musk announced on the 7th that part of the factory would resume operations from the afternoon of the 8th.

Tesla also created internal safety guidelines for restarting the factory. These include installing partitions between employees, minimizing contact and movement among employees, providing personal protective equipment, implementing touchless services for customer-facing staff, and requiring daily self-health check forms.

However, the local government, Alameda County, stated, "The suppression order to prevent the spread of COVID-19 is still in effect," and "Approval to resume production has not been granted," thereby blocking the move.

In response, CEO Musk strongly protested on Twitter, saying, "This was the final straw," and "We will immediately move our headquarters to Nevada or Texas." He continued, "Tesla is the last major automaker remaining in California," and pressured, "Whether we maintain the Fremont production facility will depend on how Tesla is treated going forward." On the 10th, Tesla filed a lawsuit against Alameda County in the Northern District Court of California.

Meanwhile, CNBC reported that the factory reopening plan posted by Tesla was created before Alameda County announced its refusal to allow the factory to reopen, so whether Tesla will actually proceed with reopening despite government orders remains uncertain.

This content was produced with the assistance of AI translation services.