Elon Musk to defy rules, reopen Tesla California plant

Elon Musk escalates feud over California’s virus shutdown, saying he’ll defy authorities and resume production at a Tesla plant.

“If anyone is arrested, I ask that it only be me,” Musk tweeted. Picture: AFP

Tesla chief Elon Musk says he is resuming production at the company’s California auto assembly plant, defying authorities and escalating a feud over the Pacific state’s pandemic shutdown.

Mr Musk made the announcement on Twitter after several days of raging online and a lawsuit seeking to resume operations at the factory.

“Tesla is restarting production today against Alameda County rules,” Mr Musk said in a tweet.

“I will be on the line with everyone else. If anyone is arrested, I ask that it only be me.”

Mr Musk said, moments later, that state officials had approved the reopening but that the move had been blocked by local authorities.

“California approved, but an unelected county official illegally overrode,” he said. “Also, all other auto companies in US are approved to resume. Only Tesla has been singled out. This is super messed up!”

Tesla is restarting production today against Alameda County rules. I will be on the line with everyone else. If anyone is arrested, I ask that it only be me.

— Elon Musk (@elonmusk) May 11, 2020

Mr Musk’s move comes amid rising disputes over the pace of easing the lockdowns imposed by states to contain the deadly coronavirus outbreak.

Over the weekend, Mr Musk threatened to move Tesla’s headquarters and factory out of California as a result of the standoff.

“Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately,” Mr Musk tweeted as part of a series of angry messages just before the company filed the lawsuit seeking to force authorities to allow a reopening.

US Treasury Secretary Steven Mnuchin voiced support for Tesla’s effort to reopen its factory and a Texas county said it would welcome the firm.

“I agree with Elon Musk,” Mr Mnuchin, the top US economic official, told CNBC television.

“He’s one of the biggest employers and manufacturers in California, and California should prioritise doing whatever they need to do to solve those health issues so that he can open quickly and safely.”

The US administration is pushing a reopening of the world’s largest economy, battered by weeks of lockdown, even as the daily death toll has generally been rising by 1000 to 2500 in recent weeks.

In Texas, one local official wasted little time in trying to woo the fast-growing car firm.

Hidalgo County said Mr Musk is more than welcome in the state, tweeting a letter from senior local official Richard Cortez.

“We no longer have a shelter-at-home mandate.” Mr Cortez said in his letter. “All that is necessary is for you to pick a location.”

The official noted that Mr Musk is already familiar with South Texas because a launch facility of his other company, SpaceX, is nearby.

Mr Musk has been raging on Twitter for days about his unsuccessful efforts to restart production, claiming the ban violates “our Constitutional freedoms & just plain common sense!”

In late April he delivered an expletive-laden diatribe during an earnings update call in which he dubbed coronavirus restrictions “fascist.”

Mr Musk announced Tesla’s production plans shortly after California Governor Gavin Newsom held a press conference during which he was asked several questions about the automaker, including about photos of the Fremont factory’s parking lot showing it full of cars, possibly indicating there was activity at the site.

A masked man walks in a nearly full Tesla plant parking lot at Fremont on Monday, in an indication the company could be about to resume production. Picture: AP

Mr Newsom said he expects Tesla would be able to resume car manufacturing as early as next week at its plant, which local authorities first ordered to close in March as part of efforts to stop the spread of COVID-19.

During the press call, Mr Newsom backed the county’s slower plan to phase in non-essential businesses. “I have great expectations that we can work through at the county level the issue with this particular county and company in the next number of days,” he said.

Tesla workers said they have been instructed to report back to work this week. The company didn’t respond to a request for comment.

Mr. Newsom also said he expected ties between Tesla and the Golden State to remain strong after Mr Musk threatened the move. “I have more confidence moving forward in our ability to support a company that this state has substantively supported for now many, many years, and in return we have been beneficiaries of their incredible growth, ingenuity and innovative spirit. We look forward to many, many decades of that relationship.”

AFP, Dow Jones