Elon Musk slams stay-at-home orders as ‘fascist’
If there was any question about what Tesla Chief Executive Elon Musk thinks about the stay-at-home orders that are meant to slow the spread of coronavirus, and which have shuttered businesses such as his company’s vehicle production plant in Fremont, he has erased any possible doubt on the subject.
Musk lashed out about the orders late Wednesday, saying that by imposing shelter-in-place edicts that cover California and many other states, local and national politicians are “forcibly imprisoning people in their homes against all their constitutional rights.” Musk made his comments during conference call with Wall Street analysts to discuss Tesla’s first- quarter business results.
Musk was also speaking just days after the shelterin-place orders that cover six Bay Area counties, including Alameda County, where Tesla’s Fremont plant is located, were extended from May 3 until at least the end of the month. Tesla’s vehicle production facility was deemed to not be an essential business when the orders went into effect, and has remained closed since late March.
Among Musk’s comments were him saying that keeping Tesla’s Fremont factory closed was “a serious risk,” and asking if the government was “right to infringe upon people’s rights as what is happening right now.” Musk also said the shelter-in-place edicts were equal to “forcibly imprisoning people in their homes, against all their constitutional rights.”
Musk went on to say that while his statements were only his own opinions, he called the societal lockdowns “an outrage,” said it was “fascist” for governmental officials to say people will be arrested if they leave their homes.
Tesla didn’t immediately respond to a request for comment about Musk’s statements.
The current shelter-inplace orders don’t prevent people from leaving their homes, but do stress that people practice social- distancing and remain six feet away from others when out in public at places such as grocery stores and parks.
Musk’s candidness was the kind that is rarely seen by CEOs of major public companies, who often play their cards close to the vest even when discussing good news about their businesses. But, Musk has a history of putting himself in the public spotlight, and sometimes getting himself in hot water with his tweets and public statements, such as when he insinuated a British cave diver was a pedophile by calling him “pedo guy” on Twitter, and when he surprised everyone by tweeting that he had “funding secured” to take Tesla private at $420 a share in 2018.
“I would say the outburst in regards to an analyst question on liquidity and the bizarre response regarding Musk’s view of the fascist government serves as a distraction to what was a positive quarter,” said Oppenheimer analyst Jeffrey Osborne. “Unfortunately, this will be what the quarter is remembered for and not the successful ramp of manufacturing in China and the Model Y.”
Musk’s comments came shortly after Tesla delivered first- quarter results that included better-thanexpected sales for the electric carmaker. Tesla said it earned $1.24, excluding one-time items, on revenue of $5.99 billion, while analysts had forecast the company to lose 36 cents a share, on $5.9 billion in sales, for the three months that ended in March.
In addition to shutting down its Fremont factory on March 23, Tesla also suspended production at its Shanghai plant for a week and a half in early February as part of a Chinese government order aimed and stemming the spread of coronavirus. The quarter also included Tesla making the first deliveries of its new Model Y crossover vehicle, which is built in Fremont.
There had a possibility that Tesla would re-start at least some production operations in Fremont this week, but the company canceled those plans by Tuesday.
Investors on Wall Street showed little concern about Musk’s comments, as Tesla’s shares climbed by 6%, to $848.14, on Thursday.
“The majority of Tesla investors are in it for the full Tesla ride, which includes Musk and his unpredictability,” said Kim Khan of financial information platform Investing.com. “I think they like to see him fighting to get business back. ( But) there’s little chance of him actually starting production by defying a lockdown.”