Defying the order of the county officials of California, the Chief Executive Officer (CEO) of Tesla Inc. (Tesla), Elon Musk announced on Monday, May 11, 2020, that the car manufacturing company has started the reopening of its single US production Factory in California.
US President Donald Trump, who has been supporting to resume the economy in the US, backed Elon Musk despite health experts’ warning to shut the plant.
Trump Supported Musk
Musk, defying an order to stay closed, has decided to resume its factory production at its sole assembly plant in the US and stated that he would be solely responsible for if there was any breach of the act. The automobile company has earlier filed a lawsuit alleging that Alameda County’s decision that ordered to shut Tesla’s plant had violated California’s constitution by defying Newsom’s orders allowing manufacturers to reopen.
President Trump twitted the next day in support of Musk’s move, “California should let Tesla & @elonmusk open the plant, NOW. It can be done Fast & Safely!” Following that, Tesla’s shares were up 2% at $827.30 in afternoon trading.
In response to Trump, who has been eager for the US economy to reopen and for Americans to return to work, on Tuesday, Musk tweeted “Thank you!” Trump encountered Musk on several occasions during his presidency and in January, Trump told CNBC that Musk was “one of our great geniuses, and we have to protect our genius.”
Over the weekend, Musk threatened to leave California and move his factory to other states. Musk’s move was considered to be a threat to the state since moving a plant would cost the employments of its people. In a tweet in February, he solicited comments on potentially opening a factory in Texas, a second option for US factories outside California.
Not a County-Approved Plan
California Governor, Gavin Newsom said on Monday that he had spoken with Musk several days ago and that the Tesla founder’s concerns helped prompt the state to begin its phased reopening of manufacturing.
States and cities around the US have put concerns to experimental methods to safely resume their economies after the coronavirus outbreak shuttered businesses and forced tens of millions of Americans out of work. Sources said around the country, some major automakers have started reopening plants and Detroit’s Big Three automakers set to reopen most US plants next week.
Nonetheless, health officials in Alameda County said late on Monday that they were aware of Tesla’s reopening of its factory without following the so-called minimum basic operations allowed during the lockdown and had notified the company it could not operate without a county-approved plan.
A veteran politician, Robert Reich, who served as US labor secretary under President Bill Clinton, criticized Musk on Twitter, “Billionaires who think they’re above the law and risk the lives of workers shouldn’t get away with it. Tell @elonmusk to close his factory until health experts say it’s safe.”
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