Tesla Inc. (TSLA) reopens its California factory against local administration orders

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The Chief Executive at Tesla Inc. (TSLA), Elon Musk announced today that the electric car maker would be resuming its production in its vehicle factory located in California, starting from Monday, against the local orders.

Musk also tweeted that he would join his workers on a meeting line and if anybody is arrested then it should be him. Musk threatened to move Tesla’s headquarters from California to Texas or Nevada amid increasing difficulties to re-open the factory.

Tesla also referred to the orders given by governor of California (Gavin Newsom), who allowed manufacturers to start the operations. TSLA further said the furloughed workers have rejoined their duties this Sunday and it has ensured safe and secure environment for their employees when they returned to work.



The company’s Fremont factory is located in Alameda county, whose health official earlier said they were aware of the hidden work going on in the factory throughout lockdown and warned the company not to carryout operations without county’s permission. The county officials said they were expecting Tesla would observe the rules set by the county without additional enforcement actions.

On the other hand, U.S. Secretary for Treasury, Mr. Steven Munchkin said in a statement that California should support reopening of TSLA’s factory if it wants Tesla to keep its headquarter in the state.

Governor of California, Gavin Newsom while referring to his discussion with Musk few days ago, said that Tesla’s concerns pushed the state to initiate its phased re-opening of manufacturing in the previous week.



Newsom further added that he has known Tesla and its founder for several years and has huge respect and admiration for their leadership and innovations. On Saturday, Tesla took legal action against county for violating the constitution of California by disobeying Newsom’s commands permitting manufacturers to resume operations.

TSLA also has an automobile plant in Shanghai and is constructing another in Berlin. Earlier this year, Musk revealed his plans of opening a second factory in the United States outside California.

Many officials from different states connected to Musk on Twitter and offered their states for the relocation soon after he warned to move out of California.

Tesla shares are up more than 2 percent in the mid-day trading Tuesday. The 52-week range of the stock is $176.99 – $968.99, while the company’s market cap is $154.116 billion.

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