Elon Musk has issued an official statement saying about the pressure on Tesla from local authorities. They are concerned about the spreading rate of a new type of coronavirus. Musk is forced to listen to the authorities and suspend the work of the electric car factory in Fremont.
A couple of days ago, the state authorities established a regime of “local shelter”. It involves ceasing the work of all enterprises that are not vital. An electric vehicle is obviously not such a need. Such strict measures have been taken to slow down the rate of coronavirus spreading.
The production of electric vehicles at Tesla’s factory, California will be suspended on Monday evening.
We recall that in addition to the factory in California, Tesla also produces solar panels on the east coast, or rather, in New York. Their production will be suspended too. Gigafactory (the plant located in Nevada) and the network of electric vehicle charging stations will continue their work in a usual mode.
No wonder Tesla shares have lost 7.86% amidst Musk’s statement.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group