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Tesla to suspend operations at California factory following local intervention amid coronavirus outbreak

The company had come under criticism for keeping its factory open as normal following the outbreak

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March 19, 2020 at 6:24 p.m. EDT
The Tesla plant in Fremont, Calif. (Sam Hall/Bloomberg News)

SAN FRANCISCO — Tesla is suspending production at its factory in Fremont, Calif., amid widespread criticism over keeping its production line active despite a Bay Area shelter-in-place order.

In a news release issued Thursday, the company said it had decided to “temporarily suspend” production at the Fremont factory that employs about 10,000 workers beginning Monday. That timeline, the company said, “will allow an orderly shutdown.”

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The Bay Area ordered millions to shelter in place. Elon Musk had Tesla employees report to work anyway.

“Basic operations will continue in order to support our vehicle and energy service operations and charging infrastructure, as directed by the local, state and federal authorities,” the company said, adding that a Buffalo factory location would also suspend production.

Tesla’s action came after intervention from local officials including the Alameda County Sheriff’s Office, who said this week Tesla was not an “essential business” under the order, and Fremont Police, who said they were meeting with factory management Thursday.

In the Bay Area, companies are allowed to maintain “minimum basic operation” amid the orders that took effect Tuesday. But Tesla CEO Elon Musk sent an email to employees Monday saying he would be coming to work, and that employees shouldn’t feel obligated to do the same.

Earlier Thursday, workers said they reported to the factory as usual and saw a full parking lot. Line workers were given face masks and had their temperature taken as they walked in the door, they said.

Tesla’s stock closed up 18 percent Thursday, but fell sharply in after-hours trading, dropping by 9 percent.

Musk has repeatedly downplayed the seriousness of the crisis, at one point calling the panic over the novel coronavirus “dumb.” After he shared a link about China’s reporting no new locally acquired infections, he speculated that the U.S., too, would be on track to report no new cases by the end of April. China implemented extreme measures such as blocking off cities at the center of the outbreak and enabling widespread testing of its population, measures not yet implemented in the U.S. Medical experts have also cautioned that China is not entirely in the clear, because there could be subsequent waves of the illness.

Coronavirus: What you need to know

Vaccines: The CDC recommends that everyone age 5 and older get an updated covid booster shot designed to target both the original virus and the omicron variant. Here’s some guidance on when you should get the omicron booster and how vaccine efficacy could be affected by your prior infections.

Variants: Instead of a single new Greek letter variant, a group of immune-evading omicron spinoffs are popping up all over the world. Any dominant variant will likely knock out monoclonal antibodies, targeted drugs that can be used as a treatment or to protect immunocompromised people.

Tripledemic: Hospitals are overwhelmed by a combination of respiratory illnesses, staffing shortages and nursing home closures. And experts believe the problem will deteriorate further in coming months. Here’s how to tell the difference between RSV, the flu and covid-19.

Guidance: CDC guidelines have been confusing — if you get covid, here’s how to tell when you’re no longer contagious. We’ve also created a guide to help you decide when to keep wearing face coverings.

Where do things stand? See the latest coronavirus numbers in the U.S. and across the world. In the U.S., pandemic trends have shifted and now White people are more likely to die from covid than Black people. Nearly nine out of 10 covid deaths are people over the age 65.

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