Author: Rich Duprey / Published by: Christian Walter

California is once again shutting down in the midst of a surge in COVID 19 cases, but this time Tesla (NASDAQ:TSLA) was called an “indispensable” company that would not have to comply with the new restrictions.

This is a good thing, because the last time California closed and kept Tesla off the list of preferred companies, CEO Elon Musk simply ignored the decisions and continued to produce his electric cars.

Perhaps to avoid another round of provocations where Musk is considering moving his company out of the state because of the restrictions, California has called the Tesla workers “indispensable workers.

The struggle

Back in March, when the corona virus outbreak was first declared a pandemic, Musk resisted the closure of his Fremont factory when health officials said it would only take two weeks to get the crisis under control.

After coming under much criticism, Musk finally gave in and closed down Tesla’s production facilities, but did not face any official sanction for disobeying the order.

When the state began allowing companies to reopen, the Alameda district upheld its closure orders, and Musk tweeted to express his displeasure and considered moving Tesla out of the state. The district finally gave in.

Most analysts considered a move by the automaker unfeasible because it would cost an estimated $1 billion and disrupt production targets. However, future programs could still be located elsewhere, as Musk recently reiterated on Twitter that the state, as much as he loved California, “has the problem of thinking too long.
While California’s state health authorities have deemed Tesla indispensable, Alameda County could still impose more restrictive rules, but for the time being it is sticking to state guidelines.

Source: (fool.com)