Tesla Plan to Keep Factory Open Thrown Up in Air by Sheriff
Tesla Plan to Keep Factory Open Thrown Up in the Air by Sheriff
(Bloomberg) -- Tesla Inc.’s claim that it qualifies as a critical business was disputed by the sheriff of the California county where its lone U.S. assembly plant is located, casting doubt over whether the company will be able to keep running the factory.
“Tesla is not an essential business as defined in the Alameda County Health Order,” the county sheriff wrote Tuesday from its verified Twitter account. “Tesla can maintain minimum basic operations per the Alameda County Health Order.”
Tesla’s head of North American human resources wrote in an email to staff earlier Tuesday that vehicle manufacturing and energy infrastructure are critical sectors and cited the U.S. Department of Homeland Security. Valerie Capers Workman, the regional HR chief, said the designation allows Tesla to keep running its factory in Fremont, despite San Francisco Bay Area orders for people to stay home to limit the spread of Covid-19.
Alameda County doesn’t see it that way.
“Tesla is directed to comply with the Alameda County health order, and can operate their business at minimum basic operations,” said Ray Kelly, a spokesman for the county. “This decision was made by public health and other high-ranking county officials.”
Tesla shares slid more than 5% in after-hours trading. They have tumbled 36% since the start of the month.
The virus is moving far faster than companies, or local governments, can respond. Though the Bay Area has taken a leading role in trying to fight the spread of the coronavirus, much remains fluid. California Governor Gavin Newsom said in a press conference Tuesday that the state has considered and is in the process of amending its directives on what is considered essential. He didn’t mention Tesla specifically.
It’s not clear if Tesla will comply with the order, defy it or fight it in court. The automaker hasn’t responded to multiple requests for comments this week.
Tesla has more than 56,000 employees globally, including an estimated 10,000 who work at the factory in Fremont. Alameda County had 27 confirmed positive cases of Covid-19, the disease caused by the coronavirus, as of Tuesday.
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