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Tesla Factory In California Will Remain Open During Pandemic: Officials

Tesla Inc.’s (NASDAQ: TSLA) manufacturing facility near San Francisco is not required to close down on account of COVID-19, Calif

Benzinga · 03/17/2020 10:59

Tesla Inc.’s (NASDAQ: TSLA) manufacturing facility near San Francisco is not required to close down on account of COVID-19, California officials said.

What Happened

Tesla is not being required to shutter its Fremont factory, even though other “non-essential” businesses are being ordered to close down in Alameda County, according to the Wall Street Journal citing a county spokesperson. 

The county order was issued on Monday with the aim of keeping people at home during the pandemic. Essential businesses, such as grocers and pharmacies, can stay open. 

A county spokesperson said, “Employees who can work from home should.”

Why It Matters

Tesla’s Fremont factory employs nearly 10,000 people. In an email to employees on Monday, Elon Musk, Tesla’s CEO, wrote, “If you feel the slightest bit ill or even uncomfortable, please do not feel obligated to come to work.” 

Musk has made comments on COVID-19 and its economic impact. “My frank opinion is that the harm from the coronavirus panic far exceeds that of the virus itself.” The Tesla CEO  opined that COVID-19 cases would not exceed “0.1% of the population,” reported the Los Angeles Times.

The carmaker has already restarted production in China, the first country to report COVID-19.

Price Action

Tesla shares traded 1.78% higher at $453 in the after-hours session on Monday. The shares had closed the regular session 18.58% lower at $445.07.

Photo Credit: Courtesy of Tesla.