Since the coronavirus began its aggressive rampage across the US, most schools, colleges, and offices still remain shut. The US had no option but to shut down all nonessential shops and production centers in a bid to prevent the spread of the virus. Amidst all this chaos, a few industrialists have spoken out against the shutdown. For the most part, these people have been heavily criticized for not being able to understand the severity of the situations. One of the most prominent of these critics have been Elon Musk, who’s comments have startled everyone. Here’s a look at everything you need to know regarding the issue and how it impacts the economy.
Caution for Tesla
Alameda County health officials warned Tesla against restarting operations at its car factory in California yesterday. Right after this incident, Tesla CEO Elon Musk tweeted that the company is moving to sue the county. He also stated that the company is planning to move its operations out of the state. As he had mentioned, a few hours later, Tesla filed a suit in the US District Court of the Northern District of California. The lawsuit seeks an injunction against the county’s lockdown order. The suit explains that it is because the lockdown contradicts the Governor’s Order by restricting the operation of businesses in the area.
To add further fuel to the fire, Tesla tweeted about the same. On Twitter, Musk said that the “ignorant and unelected” Health Officer of Alameda is acting up. Musk believes that the Health Officer’s statements and steps are in direct contrast to the Governor, President, and Constitutional freedom.
Critic for Long
Musk has been a very vocal critic of the lockdown that the coronavirus has brought on in the US. Recently, on April 29th, during Tesla’s earnings call, he called these restrictions’ fascist’ and ‘undemocratic,’ stating that the Constitution allows Americans freedom. These statements highlight the pressure that Musk feels due to his factories in the Bay Area being shut down. He further called for his supporters to voice their own criticism and disagreement with the Alameda County administration. However, the Alameda County Public Health Department recently said that it was trying its best to reach an understanding with Tesla. The team stated that they were trying to come up with safe and standard manufacturing protocols that would help with the reopening of the factory. However, the county made it clear that the safety and well-being of thousands of employees are essential for them. Also, they stated that Tesla had been responsive to recommendations and that they should reach an agreement soon.
People are Important
However, these statements, which were made hours after Musk’s tweet, did not refer to him by name or talk about his comments on the topic. The tweet had said that Tesla has had enough and that this was the final straw for the company. The tweet also threatened to move all their future programs to Nevada immediately. All planned activities in Fremont would depend on how the authorities there treat Tesla from now on.
Tesla had made it clear that they were going to resume their production in limited means at the Fremont facility yesterday. Limited operations would require around 30% of its total workforce. But, the health officials stated that as the county still had shelter-in-place orders intact, they cannot give the car manufacturer approval to move ahead with their plans. California Governor, Gavin Newsom said that the state’s production must be in tune with the manufacturing guidelines set by each county.
Fremont Shutdown
The Fremont plant assembles Tesla’s Model 3, Model Y, Model S, and Model X vehicles. It shut down on March 23rd, with the company reducing pay for all US employees as of April 13th. Furthermore, the company has also put all their hourly workers on unpaid furlough. If Musk does carry out his plan of moving out of Fremont, it remains unclear what will happen to his 10,000 workers. Musk had made a settlement with the Securities and Exchange Commission in 2018 over his tweets. They had come to an agreement that the entrepreneur should run his tweets by a company lawyer before posting them. All announcements that lead to unscheduled events require the filing of an 8-K form, as per the agreement. However, Musk has not filed an 8-K before announcing or threatening to move his plant out of Fremont.
Being a cinephile with a love for all things outdoorsy, Athulya never misses a chance to chase inspiring stories or poke fun at things, even when the subject is herself. Currently pursuing a degree in mechanical engineering, she is someone innately interested in technical and scientific research. Music reviews and op-eds define her as they allow her to explore different perspectives. Though sometimes she thinks she makes more sense playing the guitar than she does while writing.