Tesla pulls plug on plans to reopen Fremont plant

Report says the electric carmaker will keep factory closed for the time being

Tesla has withdrawn plans to re-open its Fremont vehicle production plant after the electric carmaker was set to start up some operations at the facility on Wednesday.

Tesla’s decision to keep its assembly lines silent came on the heels of six Bay Area counties, including Alameda County, where Tesla’s Fremont plant is located, saying on Monday that as part of the effort to contain the spread of coronavirus, the current shelter-in-place order is being extended until the end of May. The order had been set to be lifted on May 3.

CNBC reported Tesla’s decision late Monday, saying that the company sent employees an email telling them they wouldn’t need to come back to work this week. The company was looking at bringing back workers to do painting and stamping processes.

“Per the direction of the executive leadership team, we will not be returning to work Wednesday, April 29. Please disregard all communication and directives on returning to work this week,” said the email, according to CNBC.

Tesla didn’t immediately respond to a request for comment on the matter.

Tesla employs about 10,000 people at its Fremont facility, where it builds its Model 3, Model S, Model X and Model Y vehicles. The company

stopped vehicle production in March following several days of discussions with Alameda County officials over whether Tesla’s operations qualified it is as an essential business that could remain open under the shelter-in-place edict.

As many businesses have struggled with having to close, or remain open with reduced hours and services over the last month, there have been growing calls to relax the restrictions that have been put in place in the fight against the coronavirus pandemic. But, as new cases of the disease continue to grow, there has also been political pressure to maintain the stay-athome measures until possibly into the summer.

“Many companies in the valley are looking hard at bringing workers back in phases starting in May,” said Tim Bajarin, president of tech consulting firm Creative Strategies. “Tesla and others need to start production as soon as possible, and are putting out trial balloons to get reaction to a move under new stay-athome rules. Reaction from government leaders will determine if this is even possible before June.”

Tesla’s shares have morethan-doubled in value since the shelter-in-place orders began going into effect in March. On Tuesday, Tesla’s shares traded at around $772 each, which put Chief

Executive Elon Musk closer toward a potential performance-based compensation of more than $700 million.

Tesla is scheduled to give its first-quarter results after the stock market closes on Wednesday. The company is likely to also provide a look at the impact it expects coronavirus to have on its business in the months to come.