Amid Lockout Conflict, Musk Says He Will Move Tesla Out of California By Reuters

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© Reuters. FILE PHOTO: Tesla Inc. CEO Elon Musk speaks at an opening ceremony for the Tesla Model Y program in China in Shanghai

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(Reuters) – Elon Musk, chief executive officer of Tesla Inc. (O :), tweeted Saturday that Tesla would immediately move its headquarters and future programs to Texas or Nevada from California.

“If we even keep Fremont’s manufacturing business, it will depend (sp) on how Tesla will be treated in the future,” he wrote on Twitter, referring to the installation of the bay. San Francisco which is Tesla’s only auto plant in the United States. .

Musk also tweeted about suing Alameda County, California after his health department said the electric manufacturer should not reopen the Fremont plant because local lockouts to curb the spread of coronaviruses remain in effect.

Alameda County said on Saturday that it was working with Tesla to develop a safety plan that “allows reopening while protecting the health and well-being of the thousands of workers” who work at the plant and that he looks forward to coming to an agreement on a security plan very soon.

Musk had told employees on Thursday that limited production would resume at Fremont on Friday afternoon.

Tesla builds more than 415,000 cars a year at the Fremont plant, and moving the entire production facility would be a major undertaking.

Dan Ives, a Wedbush analyst, estimated on Saturday that the company could take 12-18 months to outsource production.

The threat to relocate the facility also comes as Tesla aims to increase production at Fremont of its model Y sport utility vehicle, the automaker’s most profitable vehicle to date.

California Governor Gavin Newsom said on Thursday that state manufacturers would be allowed to reopen. But Alameda County, where the Fremont plant is located, is expected to remain closed until the end of May, with only essential businesses allowed to reopen.

A county official said on Friday that his health department had had numerous discussions with the company and advised Tesla to wait at least another week to monitor infection rates and discuss safe ways to resume production.

Musk, who quarreled with California officials in March over whether Tesla should stop production at Fremont, criticized the foreclosure and home support orders, calling them “serious risk” to American businesses and “unconstitutional “

Tesla shares have risen 127% since March 18, their recent closing low, including a 16.8% gain in the last trading week to close at $ 819.42 on Friday.

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