Elon Musk: lawsuit against the closure of the Tesla plant in California

DIf Elon Musk is not a fan of state measures against the spread of the crown pandemic, it has been possible to read more on Twitter in recent weeks. The Tesla boss has long refused to shut down production at his main plant in Fremont, California, then tweeted out loud that Twitter had to be immediately released from the shutdown measures.

So far, Musk’s protest has been limited to Twitter. That changed over the weekend: Tesla sued the Alameda district, where the factory is located, because the government there extended the closure until the end of May.

In the request, Tesla talks about the “takeover” of the district that violates the constitution. Musk continues to express his anger in new tweets. “Alameda’s unelected and ignorant provisional health officer acts in contradiction to the governor, the president, our constitutional freedoms and common sense,” Tesla boss rumbled by text message.

All of this is causing the barrel to overflow. “Tesla will immediately move its headquarters and future programs to Texas / Nevada,” he wrote in another tweet. “The resumption of production at Fremont will depend on how Tesla will be treated in the future. Tesla is the last remaining automaker in California. “

also recommended to shareholders of the automaker in a class action lawsuit demanding compensation from the district for the late reopening of the factory.

The response to Musk’s threats and attacks was mixed in the United States. While the mayor of Palo Alto, California’s Silicon Valley city, where Tesla’s headquarters are currently located, offered help, there was also strong criticism of Musk’s behavior.

California MP Lorena Gonzales even insulted the Tesla boss: “F * ck Elon Musk“He wrote clearly on Twitter.

And then added in more tweets: “California has heavily subsidized a company that has always been mindful of the safety and well-being of its workers, destroyed unions and killed officials.”

Musk himself responded to the MPs’ tweet with a laconic “message”.

But why is the dispute escalating? After all, it’s really only a matter of a few weeks for Musk to continue his factory. The Tesla boss feels he has been treated unfairly because he sees the electric car maker as an “indispensable company,” so to speak, as systemically relevant.

Liquidity problem for Musk?

In fact, there is a list of industries that the California Governor considers indispensable, and that includes electric car manufacturers. But the district sees it differently and, as in Germany, it has something to say about health protection.

But in addition to the perceived injustice, Musk should also be concerned not to lose ground in the competition against other automakers. Most vehicle factories have now reopened and are producing cars at least at a low level. Tesla now has a second plant that has already resumed operations in Shanghai, China. But the closed headquarters hurts the electric car maker.

“Musk sees a liquidity problem arise,” believes auto expert Ferdinand Dudenhöffer of the Center for Automotive Research (CAR). “Everything is sewn into Tesla, so you can’t afford to sit still for many weeks.”

However, technologically, Americans need not fear that competition may catch up quickly. “Tesla has a three-year lead on electric drives, so three more weeks of shutdowns don’t matter,” said Dudenhöffer.

Frank Schwope, a car analyst at NordLB, even believes Musk’s tweets are the right strategy at the moment. “From their point of view, it is correct to increase public pressure now,” he says. “But it’s only a few weeks, that’s annoying, but not crucial.”

The factory in China in particular is now a lucky break for Tesla, as the company is now not completely stopped. “Overall, I’m not worried about Tesla,” says Schwope. “Only the valuation on the stock exchange is still too high.”