Tesla Inc and officials in California have resolved their acrimonious clash over safety procedures at the automaker’s sole US assembly plant with a
deal that allows production to resume as early as Monday, county officials said.
The county said the automaker could take additional steps ahead of next week after Chief Executive Elon Musk had vowed to defy authorities, saying on Monday he was resuming production despite the prohibition. On Tuesday, he also won the backing of President Donald Trump.
Tesla Chief Executive Elon Musk had vowed to defy authorities, saying he was resuming production despite the prohibition. (Reuters)
On Monday, Musk said production was resuming in Fremont, defying an order to stay closed and saying if anyone had to be arrested, it should be him.
On Tuesday, Musk won Trump’s backing. “California should let Tesla & @elonmusk open the plant, NOW. It can be done Fast & Safely!” Trump wrote on Twitter. The White House did not immediately comment on the announcement.
California should let Tesla & @elonmusk open the plant, NOW. It can be done Fast & Safely!— Donald J. Trump (@realDonaldTrump) May 12, 2020
Tesla shares were up 0.7 percent to $814.98.
On Tuesday, employee parking lots at Tesla’s factory in Fremont, California, were packed with cars. Trucks could be seen driving in and out of the factory grounds.
At the Fremont factory’s outbound logistics parking lot, where only a dozen Tesla cars were parked last week, hundreds of Tesla vehicles were seen on Tuesday.
The company had sued Alameda County challenging its decision that the plant should stay closed.
A county health official on Friday said the county had asked all manufacturers, including Tesla, to delay operations by at least another week to monitor infection and hospitalization rates.
Tesla on Saturday released a plan to keep workers returning to the factory safe.
The measures, which include temperature screenings, the installation of barriers to separate work areas and protective equipment for workers, are similar to those set up by Detroit-based automakers General Motors, Ford and Fiat Chrysler. Those automakers are set to resume at most US auto plants starting on Monday.
Trump is eager for the US economy to reopen and for Americans to return to work.
Musk over the weekend threatened to leave California for Texas or Nevada over his factory's closure. His move has highlighted the competition for jobs and ignited a rush to woo the billionaire executive by states that have reopened their economies more quickly in response to encouragement from Trump.
Last month, Musk was on a call with Trump and other chief executives to discuss the reopening of the US economy in which Musk said he wanted to be able to resume production by May 1 or earlier, a person briefed on the call confirmed. Details of the call were reported earlier by the Washington Post.