Tesla CEO announces resumption of EV factory contrary to restriction order

Elon Musk, CEO of Tesla, USA, announced that production will restart at Fremont plant in California, USA, on same day May 11, which is in conflict with the local municipality over the resumption of operations. The local municipality of Alameda, where the factory is located, has not approved the reopening at this point due to the risk of the spread of the coronavirus.

Tesla factory, Fremont, California

Musk posted on Twitter: “Tesla is restarting production today against Alameda County rules. I will be on the line with everyone else. If anyone is arrested, I ask that it only be me.”

The factory that will resume production is Tesla’s only EV assembly base in the United States, which had been suspended from operation in late March due to the pandemic. The company was planning to resume production on May 8 after some restrictions in California were relaxed, but Tesla was unable to do so because the local Alameda county did not allow it for reasons such as employee safety. Tesla also filed a lawsuit on May 9 to suspend the county’s order.

California Governor Gavin Newsom expressed optimism on Monday that an agreement could be reached to re-open the Tesla electric vehicle factory in Alameda County next week, and hoped for an early settlement between the two. But soon after the press conference Musk tweeted that that he reopening the factory. Musk also announced that he would immediately relocate his headquarters to Texas, his tough stance may also cause great friction with local governments.

The state of Michigan, where the automobile industry is concentrated, has already approved the reopening of automobile-related factories, and major automobile companies such as General Motors (GM) have announced plans to gradually resume production from the 18th. Although California has allowed the resumption of automobile production, municipalities such as Alameda County around Silicon Valley, which has continued its own stricter restrictions on going out of the state, do not currently allow the automobile factory to reopen within the region.

Author: Nabeel K
Email: nabeel@wheelsjoint.com

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