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Musk Reopens Tesla Plant Despite County Orders

Tesla Inc's (NASDAQ: TSLA) California plant reopened after Elon Musk defied orders aimed at containing the spread of COVID-19. Musk asked to be the only person arrested, if it comes to that, he tweeted on Monday.

Benzinga · 05/12/2020 18:41

Tesla Inc's (NASDAQ: TSLA) California plant reopened after Elon Musk defied orders aimed at containing the spread of COVID-19. Musk asked to be the only person arrested, if it comes to that, he tweeted on Monday.

On Saturday, the company also filed a federal lawsuit and threatened to relocate its manufacturing facility after unelected Alameda County health authorities demanded the company not return to full operations. 

It is still unclear whether Tesla will suffer any consequences for reopening without permission.

The Other Front

The Big 3 Detroit automakers are overcoming the market turmoil due to their fortified balance sheets. 

Morgan Stanley (NYSE: MS) conducted a "shutdown analysis" and its results inspired confidence as General Motors Company (NYSE: GM) and Ford Motor Company (NYSE: F) are now more financially stable than during the last major financial crisis. As CEOs made it their mission to be prepared for the next crisis, billions in cash were set aside, leverage was reduced, and more flexible union contracts were implemented. 

Ford and GM suspended their dividends last month as a hedge against the unprecedented market environment. Due to its $6 billion cost-saving plan through 2020, GM actually achieved profit in the first quarter, whereas Ford and Fiat Chrysler Automobiles (NYSE: FCAU) sustained billions in losses.

Although the second quarter is expected to be the worst in terms of coronavirus impact for the entire industry, Detroit's Big 3 seems equipped to handle it.

Outlook

Despite Tesla's shares gaining over 200% in the last 12 months, past performance is not indicative of future results. Until society emerges from lockdown and demand is restored, Tesla's future remains uncertain.

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be sent to ivana@iamnewswire.com

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