Tesla Motors continues minimal operations despite Coronavirus (Covid-19) lockdowns

MANILA: As a result of the Covid-19 pandemic, almost every automobile company declared a temporary suspension of its production. But there is one which remains determined to  keep rolling out cars and continue operations: Tesla Motors.

Tesla explained to the authorities of Alameda County on March 18 that it already scaled down the number of workers in its car plant in Fremont, California. But it wasn't clear what that meant for the electric vehicle production of the company.

The Palo Alto-based company oversees the manufacture of electric vehicles in its factory. It usually hires around 10,000 people, and it was able to produce week model S, X, 3, and Y vehicles within this week. The production continued despite a multi-county Bay Area lockdown mandate released Monday to limit the spread of Covid-19. Tesla told Alameda County on Wednesday that there are currently 2,500 employees at the factory.

According to Ray Kelly, spokesman of Alameda County, They cannot proceed to business as usual. They will go on a minimal operations basis.

The lockdown order enables companies to continue with their basic operations. These include inventory value preservation, security, and payroll, yet does not include automobile production.

When asked what the county would do if car production continues, Kelly told reporters that the Fremont Police should handle the enforcement.

Tesla human resources head Valerie Capers Workman stated in her e-mail sent to factory employees on Wednesday; there are no adjustments to the regular assignment of factory employees. They can continue to report for duty if they have an essential task. These would include the development, distribution, deliveries, testing, and support groups. Sick employees should stay in their homes and use their accrued paid time off.

Workman also emphasized conflicting guidance coming from various levels of the government in dealing with the Covid-19 pandemic.

Workman also stated in an e-mail to employees on Tuesday morning that the federal government has ordered the national critical infrastructure to continue operations despite this pandemic. She also pointed out the need for people to access energy and transportation, and that the company is vital in providing these needs.

As a result, thousands of workers rushed to work in the factory on Tuesday. Most of them arrived by bus.

Moreover, over a dozen Tesla workers sent messages to The Times. Their messages revolved around complaints regarding the failure of Tesla to conform to the lockdown order. Some employees did not want to catch or spread the dreaded virus to their respective families. Yet, they also feared that they might lose their jobs if they chose to stay home.

Workman explains that the effect of a production shutdown on Tesla Motors' finances appears to be vague. The company declared that it was able to gain approximately US$6 billion in cash at the end of 2019. It received US$2 billion a month ago from the selling of new stock shares, at US$767 a share. On Wednesday, Tesla closed down 16% at US$361.22, which is lower by 60% from its record-breaking value of US$917.42 on February 19.

In Shanghai, China, Tesla has a second factory that resumed operations after the Covid-19 lockdown. However, the pandemic has triggered a devastating hit in the car sales of that country, regarded as the world's biggest automotive market. Tesla's sales in China dropped by 80% in February this year.