California county says Tesla factory cannot operate normally in coronavirus shutdown

(Reuters) – Tesla Inc (TSLA.O) cannot operate its main U.S. vehicle factory normally as the San Francisco Bay Area has begun a three-week lockdown to rein in the spread of coronavirus, a spokesman for the county’s sheriff’s office said on Tuesday.

Tesla’s sole U.S. auto factory in Alameda County employs more than 10,000 workers and had annualized production of slightly over 415,000 units by the fourth quarter.

The county is one of six covered by a ‘shelter in place’ order from regional authorities that limits activity, travel and business functions to only the most essential, and advises people to stay home except for the most crucial reasons.

“Tesla is not an essential business as defined in the Alameda County Health Order. Tesla can maintain minimum basic operations per the Alameda County Health Order,” the spokesman said.

Asked what enforcement measures the county would take if Tesla did not comply, the spokesman only said that Tesla would be in violation of the California health and safety code.

Under Alameda County’s lockdown order issued on Monday, violations or failure to comply is a misdemeanor punishable by fine, imprisonment, or both.

Businesses deemed non-essential can only maintain minimum basic operations under the order, such as ensure security and processing payroll and employee benefits.

But he declined to provide details on any enforcement measures the sheriff’s office would take. The spokesman said the Alameda County Sheriff’s Office had not spoken to Tesla since implementing the order.

Tesla did not respond to a request for comment.

Prior to the county’s decision, Tesla told employees in an email the company and its suppliers would continue operations supporting the manufacturing and delivery of vehicles, a person who had see the email told Reuters.

The California governor’s on Tuesday referred to California’s Department of Public Health when asked whether the state planned to issue any shutdown guidelines for manufacturing facilities.

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That department said in a statement more guidance would likely be issued in the days ahead, but did not provide further details.

In an internal memo on Monday, Tesla Chief Executive Officer Elon Musk told employees he was not aware of any who had tested positive for the virus, and urged them to stay home if they felt the “slightest bit ill or even uncomfortable,” sources familiar with the matter told Reuters.

Bay Area counties had reported 273 coronavirus infections by Monday. California has reported six deaths from the COVID-19 respiratory illness caused by the virus.

Reporting by Tina Bellon in New York; Editing by Shri Navaratnam and Lincoln Feast.

Our Standards:The Thomson Reuters Trust Principles.
source: reuters.com


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