Thursday, May 07, 2020

Tesla preparing to partially reopen Fremont factory: report

Published: May 6, 2020 By Mike Murphy

Tesla Inc. TSLA, -0.32% is preparing to resume some car production at its Fremont, Calif., factory within the next week, potentially in violation of local coronavirus rules, the San Francisco Chronicle reported late Wednesday. Citing an anonymous source familiar with factory operations, the Chronicle said a small number of employees returned to the plant Wednesday to start preparations to reopen some production lines between now and next week. Tesla did not immediately respond to a request for comment. California Gov. Gavin Newsom has said some manufacturing plants may soon reopen, but it was unclear if Tesla's operations would be included. Alameda County authorities declared Tesla's factory a non-essential business in March, shuttering it along with most other businesses in the San Francisco Bay Area. Tesla Chief Executive Elon Musk has been an outspoken critic of stay-at-home rules to stem the spread of the coronavirus, and Tesla defied the rules for about a week until the county sheriff intervened. The plant, which employs about 10,000 workers, has reportedly been staffed by a small number of "essential workers" since mid-March. Tesla reported first-quarter earnings last week, posting a surprising profit and saying its goal of selling 500,000 vehicles this year remains on track. Tesla shares are up 87% year to date, compared to the S&P 500's SPX, +1.15% 12% decline.

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