Tesla Pushes Back on Shutdown Orders
Tensions between state officials and in-state manufacturers have been high since announcements related to COVID-19 shutdowns began. In many instances, unions representing furloughed or downsized workers have also been very vocal about how and when factories should resume operations.
While Michigan auto plants have been getting a lot of press, one story out in California has grabbed the spotlight. Tesla’s ongoing standoff with county and state officials seems to have come to an end. From early days after initial shutdown orders were put in place, Tesla CEO Elon Musk has been very vocal in his opposition to the orders. According to media reports, Musk recently referred to these measures as “fascist” in conversations with investors.
Musk added: “If somebody wants to stay in their house that’s great… They should be allowed to stay in their house. They should not be compelled to leave, but to say that they cannot leave their house and they will be arrested if they do, this is fascist… This is not democratic… not freedom. Give people back their … freedom.”
Recently, even US President Donald Trump weighed in on the issue, saying he supported Musk and Tesla, adding: “California should let Tesla and Elon Musk open the plant now… It can be done fast and safely!”
Meanwhile, in early May, California Governor Gavin Newsom issued an order easing social distancing restrictions, and, as a result, the Alameda County health department said it planned to allow some “additional approved activities,” a decision that eased restrictions on Tesla as well as other local businesses.
According to various media reports, this “easing” should allow Tesla’s Fremont, California, plant to reopen for “minimum business operations.” The order states that Tesla should institute “additional safety recommendations…”
Musk told the media the company “has already begun production…” regardless of county officials’ decisions. The CEO reportedly even threatened to “move the company headquarters out of state” if officials refused to allow his company to operate. County health officials said they planned to “work with the Fremont Police Department to verify Tesla is adhering to physical distancing and that agreed upon healthy and safety measures…”
Meanwhile, politicians at every level and on both sides of the aisle are making statements about this situation, which suggests it may be a bellwether case both for manufacturing disputes in other states, as well as an issue in the upcoming elections. As Trump offered support for Musk’s position, a local San Diego official told CNN Musk should not be rewarded for “waving his finger” and “throwing his temper tantrum.”
It’s likely many others will weigh in over the next few days and weeks. Meanwhile, Musk appears eager to get operations up and running again, and it’s likely the Tesla CEO will continue to speak out on the right of his business to continue operations, which may inform similar discussions in several other states.
Ronn Torossian is the CEO and Founder of 5W Public Relations. 5W PR is a leading digital pr and influencer marketing agency.
