Musk Says "Arrest Me"... Tesla Factory Resumes Operations Despite State Government Opposition

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jaehee] American electric vehicle manufacturer Tesla has pushed ahead with reopening its Fremont factory despite opposition from the California state government. Earlier, California had requested Tesla to extend the shutdown to prevent the spread of the novel coronavirus (COVID-19), but Tesla insisted on resuming operations.

On the 11th (local time), Elon Musk, Tesla's CEO, tweeted, "Tesla will resume production today without complying with the regulations of Alameda County (the administrative district where the Fremont factory is located)," adding, "If anyone should be arrested, it should only be me."

This was posted shortly after California Governor Gavin Newsom held a press conference the same day, stating, "I recently spoke with Musk, and he said the factory could open next week." This can be interpreted as Tesla pushing for the factory reopening without consulting the state government. CNBC reported that Governor Newsom was completely unaware of the factory's reopening and expressed disbelief. Consequently, concerns are rising that the conflict between the state government and Tesla may deepen.

According to Fox News on the same day, the Fremont factory parking lot was filled with vehicles of employees coming to work. Some employees reportedly started working on Sunday afternoon, the 8th, and continued through the next day.

This factory reopening is the first since March 23, about a month and a half ago. The Fremont factory produces the sedan models Model 3 and Model S, as well as the SUV Model X.

Since last week, Tesla has strongly clashed with the state government over the extension of the shutdown. CEO Musk said, "At least three neighboring counties in similar situations have already resumed economic activities, and other American automakers have also been approved to reopen their factories," adding, "Tesla is the only automaker in California, and whether we stay here depends on how we are treated going forward." He also stated that the headquarters would be moved to Texas or Nevada.

CNBC reported, "California imposes a high tax rate of 13.3%, and Musk has paid $140 million in taxes to the state government. If Musk moves the headquarters to Texas or Nevada, where there is no income tax, he could save this amount." Tesla filed a lawsuit against Alameda County in the Northern District Court of California on the 10th.

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