Coronavirus: Elon Musk promises to move the Tesla factory to the confinement row



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Elon Musk, the billionaire owner of the electric car company Tesla, is embroiled in a dispute over the reopening of his California-based factory

Billionaire Tesla chief Elon Musk said he will move the electric car maker’s headquarters out of California, after he was ordered to keep his sole vehicle plant in the United States closed.

“Tesla will now move its headquarters and future programs to Texas / Nevada immediately,” the CEO tweeted.

The company is filing a lawsuit against Alameda County, he added.

The county health department had refused to allow the Tesla factory to reopen on Friday, citing closure measures.

According to John Hopkins University figures, 2,632 people in California have died of coronavirus.

Since March 23, all “core operations” have been suspended at the Tesla plant in Fremont, near San Francisco, due to “shelter-in-place” orders issued in Alameda County. The factory employs more than 10,000 workers and manufactures around 415,000 vehicles each year.

The California government has eased some restrictions across the state this week, allowing companies to resume operations. But several Bay Area counties have issued their own criteria for businesses to reopen, which takes precedence.

At Alameda, all businesses except essentials must remain closed until the end of May.

Musk suggested that the future of the factory could now be in doubt, tweeting: “If we even maintain Fremont’s manufacturing activity, it will depend on how Tesla is treated in the future.”

In a statement released prior to Musk’s tweets, Alameda County said: “We welcome Tesla’s proactive work on a reopening plan, so that once they meet the criteria to reopen, they can do it in a way. that protects your employees and the community at large. “

Musk, 48, who welcomed a baby with Canadian singer Grimes earlier this week, erased $ 14 billion (£ 11 billion) from Tesla’s value on May 1 after tweeting that the price of his actions was too high.

It has generated controversy over its opposition to coronavirus restrictions and its promotion of unproven treatments for the virus.

In early March, the tech billionaire declared: “Coronavirus panic is silly” and “FREE AMERICA NOW.”

However, he later donated hundreds of ventilators to hospitals in New York State to help meet demand during the outbreak.

Tesla has suspended operations at its plant in the Chinese city of Shanghai, according to Bloomberg. It had previously closed the factory as a temporary measure when the virus was at its peak in China.

The company reported a net profit in the first three months of this year, and its shares have risen to almost $ 820 (£ 669; € 756). But analysts expect the coronavirus pandemic to negatively impact their earnings in 2020.



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