“Transferring away from Fremont would take no less than 12 to 18 months and will add danger to the manufacturing and logistics course of within the meantime,” Wedbush Securities analyst Daniel Ives wrote in a word to traders.
However Musk plans one other U.S. manufacturing unit to extend output, probably in Texas, and will transfer manufacturing as soon as that plant is up and operating.
The dearth of manufacturing in Fremont cuts off Tesla’s income and is a giant monetary pressure. On a convention name final month, Musk stated the corporate solely has meeting vegetation in Fremont and Shanghai, and the Fremont facility produces nearly all of its autos. He known as the closure of Fremont a “severe danger.”
The coronavirus causes delicate or reasonable signs for most individuals. But it surely has killed greater than 78,000 individuals within the U.S., with the loss of life toll rising.
Ives wrote that there is now a high-stakes poker recreation between Musk and county officers — and Musk confirmed his playing cards. “Now all eyes transfer to the courts and the response from Alameda County and probably California state officers.”
Musk’s tweets come as competing automakers are beginning to reopen factories within the U.S. Toyota will restart manufacturing on Monday, whereas Common Motors, Ford and Fiat Chrysler all plan to restart their vegetation step by step on Might 18. Tesla is the one main automaker with a manufacturing unit in California.
— to lompocrecord.com