Amid lockdown dispute, Musk says he will move Tesla out of California

[rooster59]

Amid lockdown dispute, Musk says he will move Tesla out of California

 

FILE PHOTO: Tesla Inc CEO Elon Musk speaks at an opening ceremony for Tesla China-made Model Y program in Shanghai, China January 7, 2020. REUTERS/Aly Song/File Photo

 

(Reuters) - Tesla Inc's <TSLA.O> chief executive Elon Musk tweeted on Saturday that Tesla will move its headquarters and future programs to Texas or Nevada from California immediately.

 

"If we even retain Fremont manufacturing activity at all, it will be dependen (sp) on how Tesla is treated in the future," he wrote on Twitter, referring to the facility in the San Francisco Bay area that is Tesla's only U.S. vehicle factory.

 

Musk also tweeted about suing Alameda County, California, after its health department said the electric carmaker must not reopen the Fremont factory as local lockdown measures to curb the spread of the coronavirus remain in effect.

 

Alameda County said on Saturday that it has been working with Tesla to develop a safety plan that "allows for reopening while protecting the health and well-being of the thousands of employees" that work at the factory and that it looks forward to coming to an agreement on a safety plan very soon.

 

But Fremont Mayor Lily Mei expressed concern about the potential economic implications of continuing the shelter-in-place order without provisions for manufacturers such as Tesla to resume. Mei on Saturday urged the county to work with businesses on "acceptable guidelines for re-opening."

 

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

 

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

 

Dan Ives, a Wedbush analyst, on Saturday estimated it could take the company 12 to 18 months to relocate production.

The threat to relocate the facility also comes as Tesla aims to ramp up production at Fremont of its Model Y sport utility vehicle, the carmaker's most profitable vehicle to date.

 

California Governor Gavin Newsom had said on Thursday that manufacturers in the state would be allowed to reopen.

But Alameda County, where the Fremont factory is located, is scheduled to remain shut until the end of May with only essential businesses allowed to reopen.

 

Musk, who sparred with California officials in March over whether Tesla had to halt production at Fremont, has criticized the lockdown and stay-at-home orders, calling them a "serious risk" to U.S. business 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.

 

(Reporting by Sabahatjahan Contractor and Maria Ponnezhath in Bengaluru, Tina Bellon and Sinéad Carew in New York; Editing by Daniel Wallis and Chris Reese)

 

-- © Copyright Reuters 2020-05-10

 

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[Relocated]

I change my mind, I will buy his car. 

<deleted> California.

Edited May 10, 2020 by metisdead
Profanity removed.

[bluesofa]

29 minutes ago, rooster59 said:

chief executive Elon Musk tweeted

Sounds familiar.

[Tug]

Doubt it to expensive and retarded don’t be so jealous lol sun sand beautiful women the 5th largest economy on earth California has a lot going for it

[metisdead]

Some troll posts and replies have been removed. 

[Geoffggi]

5 hours ago, rooster59 said:

Amid lockdown dispute, Musk says he will move Tesla out of California

I wish I was that rich.....LOL

[Greg O]

Most manufacturing in Alameda county had moved out 25 years ago. (Taxes and and government oversight). The Fremont plant is an old GM plant that was abandoned by GM 20+ years ago as The state of California taxed them out. Then Steven Jobs had it but moved production you know where...Tesla already has massive land holdings and a mega battery plant in nearby Northern Nevada and could readily relocate to the neighboring state given their tax incentives. I doubt he's just threatening. 

[mrfill]

If its going to take 12-18 mths to relocate, perhaps he could up production at the Shanghai factory so he can close the Alameda operation sooner. Like a true patriot...

[Eric Loh]

8 hours ago, Retarded said:

I change my mind, I will buy his car. 

<deleted> California.

Even if made in China? 

[JusticeGB]

California's high taxes are driving businesses away and the stupid local government imposing extra lockdown restrictions is the last straw. I don't like Musk but at least this is a sensible decision.  I hope many others follow him so the ridiculously high taxes of California make California bankrupt. 

[malibukid]

8 hours ago, Tug said:

Doubt it to expensive and retarded don’t be so jealous lol sun sand beautiful women the 5th largest economy on earth California has a lot going for it

but not what it use to be.

[ChouDoufu]

with government subsidies going away, and gasoline at record lows, who's gonna spend $75K+ on a virtue-signaling-mobile?  especially now with so many out of work?

 

imo the only thing musk is manufacturing now is a prefab excuse for his "car" company collapsing.

[Crazy Alex]

9 hours ago, Tug said:

Doubt it to expensive and retarded don’t be so jealous lol sun sand beautiful women the 5th largest economy on earth California has a lot going for it

You've never run a business in California.

[Crazy Alex]

1 hour ago, malibukid said:

but not what it use to be.

Born and raised in the Inland Empire. California has been driving away business for decades. Defected in 1997.

[jm91]

5 hours ago, Greg O said:

Most manufacturing in Alameda county had moved out 25 years ago. (Taxes and and government oversight). The Fremont plant is an old GM plant that was abandoned by GM 20+ years ago as The state of California taxed them out. Then Steven Jobs had it but moved production you know where...Tesla already has massive land holdings and a mega battery plant in nearby Northern Nevada and could readily relocate to the neighboring state given their tax incentives. I doubt he's just threatening. 

What a load. The Fremont plan was closed in 2009 by Toyota and GM because of the 2008 financial crisis. 

As for Tesla it received huge government subsidies to reopen the plant. Musk is again at the public teat begging for more corporate socialism. Conservatives love socialism for corporations and wealthy people. 

Try getting your facts straight. 

 

Edited May 10, 2020 by jm91

[Greg O]

Oh relax as I was just recalling from memory or am I being tested ? They shut it down before Toyota was ever in the picture, check your facts ...but its just a forum doesn't matter anyway as a I'm a Defector myself. 

[jm91]

1 minute ago, Greg O said:

Oh relax as I was just recalling from memory or am I being tested ? They shut it down before Toyota was ever in the picture, check your facts ...but its just a forum doesn't matter anyway as a I'm a Defector myself. 

No it was a GM Toyota joint venture that started in 80s 

You paint a misleading picture - apparently from faulty memory - about the situation, 

The trend towards globalization is the driver of jobs leaving the USA. The trend is to make factories bigger and get economies of scale. So manufacturers are consolidating plants - often going where they can get the most corporate welfare for states and local governments. 

The hypocrisy of conservatives crying about public money going towards public services and then cheering corporate welfare is stunning.  

 

The promise of globalization was high paying white collar jobs would replace those factory jobs. The reality is higher education has been underfunded and those white collar jobs now come with 20 years worth of student loans. 

I also moved out of California - I would go back anytime but I am stuck in the USA south. 

What is the obsession conservatives have with California? I find it strange. 

[Crazy Alex]

1 hour ago, jm91 said:

What a load. The Fremont plan was closed in 2009 by Toyota and GM because of the 2008 financial crisis. 

As for Tesla it received huge government subsidies to reopen the plant. Musk is again at the public teat begging for more corporate socialism. Conservatives love socialism for corporations and wealthy people. 

Try getting your facts straight. 

 

You're half right. Both conservatives and liberals love corporate welfare. Who do you think pushed for *green energy* welfare anyway?

[jm91]

1 minute ago, Crazy Alex said:

You're half right. Both conservatives and liberals love corporate welfare. Who do you think pushed for *green energy* welfare anyway?

I don't know. Answer your own rhetorical question. 

If you are familiar with the idea of externalities then  you understand that coal and gas fired electrical plants come with huge externalities - subsidies that make it economical and large social cost in terms of pollution. Is green energy worth the subsidies or corporate welfare? (My own rhetorical question)

I don't know. 

What do you think? Who should be getting public subsidies? Dirty coal or "clean" energy? 

 

[Sujo]

After naming his kid i think he needs a break from planet earth.

[jm91]

25 minutes ago, Crazy Alex said:

You're half right. Both conservatives and liberals love corporate welfare. Who do you think pushed for *green energy* welfare anyway?

Liberals do often favor public/private approaches to problems. The hypocrisy is conservatives crying and being overwrought at the idea of public goods like education and healthcare then advocating for corporate welfare for the wealthiest people in the world (corporations are people by law). 

Pure hypocrisy. 

[jm91]

18 minutes ago, Sujo said:

After naming his kid i think he needs a break from planet earth.

Hopefully Elon Musk will take your advice and shoot himself up into space on one of his rockets.

[White Christmas13]

12 hours ago, Retarded said:

I change my mind, I will buy his car. 

<deleted> California.

Yeah after he posted the other day his cars are to expansive

[geriatrickid]

This isn't about California, because the state has allowed manufacturing to resume effective May 7. It is the county that has a  shelter in place order that applies to May 31 because of the high number of infections in the county. If the infections can be controlled before may 31, the county will lift the order.  However, San francisco/Oakland/Alameda is a hotspot of infection. In the USA, many states give counties power to administer their regions. it is called giving power to the people and is a part of the concept we call "democracy". County residents elected the county board of commissioners. 

It is irresponsible for Musk to put his workers health at risk when he knows how bad the epidemic is in the county.

 

Elon doesn't own Tesla. It is a public company and decisions taken must be approved by the board. The board  is already dealing with multiple shareholder and regulatory issues due to elon's  bad temper.  The company does not need more litigation because of an empty threat.

 

You can't just relocate a plant overnight. Nevada doesn't have the power supply nor the infrastructure needed and it would take a year or more to   change over. One of the reasons why Tesla is in California  is because it needed a quality  labour force and access to the intellectual assets of the region's high tech corridor. It is close to its key customer  base.  Nevada cannot provide the  skilled labour nor intellectual capital. It isn't even a market for the products. It is why  advanced R&D companies do not relocate to Iowa or Idaho or Mississippi despite there being plentiful labour and  tax incentives.

 

 The man has some serious emotional issues. I used to respect the guy, but he  has become self absorbed and a bully. No matter how brilliant, if he can not win hearts and minds,  his plans will never see the light of day, no matter how wealthy he is.

[yuyiinthesky]

18 minutes ago, geriatrickid said:

The man has some serious emotional issues. I used to respect the guy, but he  has become self absorbed and a bully. No matter how brilliant, if he can not win hearts and minds,  his plans will never see the light of day, no matter how wealthy he is.

I think many of his plans have already seen the light of the day. One of the guys which don't only dream but also do, make dreams a reality.

[Crazy Alex]

1 hour ago, jm91 said:

I don't know. Answer your own rhetorical question. 

If you are familiar with the idea of externalities then  you understand that coal and gas fired electrical plants come with huge externalities - subsidies that make it economical and large social cost in terms of pollution. Is green energy worth the subsidies or corporate welfare? (My own rhetorical question)

I don't know. 

What do you think? Who should be getting public subsidies? Dirty coal or "clean" energy? 

 

It's not a rhetorical question. You just don't want to answer it.

 

As to who should be getting subsidies? How about NO ONE?

[Crazy Alex]

1 hour ago, jm91 said:

Liberals do often favor public/private approaches to problems. The hypocrisy is conservatives crying and being overwrought at the idea of public goods like education and healthcare then advocating for corporate welfare for the wealthiest people in the world (corporations are people by law). 

Pure hypocrisy. 

Take it up with them I guess. So how has government done with primary education?

[jm91]

1 minute ago, Crazy Alex said:

Take it up with them I guess. So how has government done with primary education?

You are the one posting rhetorical questions so I am saying answer your own questions. 

How has government done with primary education? Primary education is funded at the state and local levels - what is your point? Please try and make one. 

[Crazy Alex]

Just now, jm91 said:

You are the one posting rhetorical questions so I am saying answer your own questions. 

How has government done with primary education? Primary education is funded at the state and local levels - what is your point? Please try and make one. 

Public education is also funded and regulated by the federal government.

[jm91]

5 minutes ago, Crazy Alex said:

It's not a rhetorical question. You just don't want to answer it.

 

As to who should be getting subsidies? How about NO ONE?

Tell that to the current group of conservatives who love public money going to companies like Tesla. 

I think subsidies should go to education. I guess you don't.