Donald Trump backs Elon Musk, who illegally reopened his Tesla factory
Elon Musk, who defied local health officials by announcing the resumption of activity at the Tesla plant in California, received support from Donald Trump.
Elon Musk only listens to him in his factory in California. "Tesla resumes production today (Monday, editor's note), against Alameda County's rules. I'll be in line with everyone. If anyone is arrested, I ask that it be me, and me alone ", tweeted the whimsical founder of the electric car maker.
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
On Tuesday morning, Donald Trump gave his support to Elon Musk in a tweet. "California should let and Elon Musk reopen the plant, NOW. It can be done quickly and safely!" Wrote the President of the United States.
Local authorities promise to tackle the problem "in stages", as with other companies that have violated their containment orders. Tesla shares gained 2.2% on Tuesday afternoon on the New York Stock Exchange.
Complaint filed by Tesla
Elon Musk, who just had a son with musician Grimes, spent part of the weekend railing on the network against the county's temporary ban.
"Frankly this is the straw that broke the camel's back. Tesla will immediately move its headquarters and future projects to Texas / Nevada. And if we were to keep a manufacturing activity in Fremont, it would depend on how we are. treaties, "he said on Saturday in a long diatribe, as usual. He accuses the local authorities in particular of being "irrational and cut off from reality".
Tesla filed a lawsuit against Alameda County on Saturday, saying their decision contradicts federal and California rules, where businesses deemed "essential" are allowed to operate. The group argues that this definition applies to its case, since it installs solar panels and terminals to charge electric cars.
Asked about the matter at a press conference on Monday, Gavin Newsom, the governor of California, confirmed that manufacturing activities, with the necessary changes, were no longer restricted in the state, which has begun to relax the confinement. "I believe, I think and I hope they will be allowed to resume production early next week," he said.
Monday morning, the billionaire boss had received the support of the US Secretary of the Treasury. "I agree with Elon Musk. He's one of the biggest employers and builders in California," Steven Mnuchin said on the US channel CNBC.
"California should focus on what they need to do to fix the health issues so that it can open quickly and safely, otherwise they will realize that it has moved its production to another state," continued Donald Trump's minister.
An extension of "fascist" confinement
A county in Texas has also jumped at the opportunity, proposing in the wake of Elon Musk to come and install its operations on its territory. "I read your dissatisfaction with the California authorities (...) and I wanted to let you know that Hidalgo County is ready to welcome you and Tesla Motors immediately", writes Richard Cortez, high county official, in a letter posted to Twitter with a hashtag "#WelcomeTesla".
"We have a motivated, business-friendly governor," he argues, recalling that Elon Musk already had a satellite launch site for another company, SpaceX. "All you have to do is pick a location."
"Moving from Fremont would take at least 12 to 18 months," notes analyst Dan Ives of Wedbush Securities. "It's a high stakes poker game, and Musk just showed his cards. All eyes are now on the local authorities and California."
Elon Musk had already ignited, during a teleconference, with financial analysts, judging that the extension of the confinement was "fascist" and "not democratic". Tesla managed to post a modest but surprise profit of $ 16 million in Q1, a 33% jump in car deliveries and revenue up 32% to $ 5.99 billion.
