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.
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.
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