This article contains commentary which reflects the author's opinion
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Elon Musk has made the bold move of reopening the factory without local permission. What will happen now is up to local officials If they value re-election, they will stand down. The citizens in the region are very upbeat about the development.
Elon Musk Wants to Escape California On Lockdown
Tesla’s inventor and CEO has a problem. To continue making money, he has to build things. From electric cars, trucks and battery packs to solar glass and grid-scale utility providers. With the ongoing Corona issue, he cannot continue for long. Even though the California Governor has ok’d industries setting a timeline for restarting production, Alameda County has decided to not allow it. Governor Newsom has given Counties the option for tougher restrictions.
Long a Silicon Valley area icon, and California’s only car company, Musk has had enough and is looking into moving all or most operations to Nevada or Texas. While the move will take time, which can be used to broker a deal, it has people in CA worried. The workers, some of whom were poached from area tech industries, may not come along. There is a question whether Nevada or Texas has the skilled workers to replace them easily.
“Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependent on how Tesla is treated in the future. Tesla is the last car-maker left in CA.”Elon Musk (@elonmusk) May 9, 2020
Fremont, CA has benefited greatly from being the Tesla brand’s car manufacturing home. The effect on the town the region, and the State’s businesses and utilities is major. If some agreement can’t be reached with county management, they may have cost themselves permanently. Even in California, you can’t raise taxes forever, but they keep trying.