INSUBCONTINENT EXCLUSIVE:
Tesla will suspend production at its Fremont, Calif., factory beginning March 23, days after a shelter in place order went into effect in
Alameda County due to the COVID-19 pandemic that sparked a public tussle between the automaker and local officials over what was considered
an &essential& business.
Some basic operations that would support Tesla charging infrastructure and what it describes as its &vehicle and
energy services operations& will continue at the factory, which under normal circumstances employs more than 10,000 people.
Tesla will also
suspend operations at its factory in Buffalo, N.Y., except for ''those parts and supplies necessary for service, infrastructure and critical
supply chains,& the company said in a statement.
Tesla could not be reached for comment
TechCrunch will update the story if the company responds.
The Alameda County Sheriff also confirmed the announcement, noting in a tweet that
Tesla would suspend production during the health order and that minimum basic operations are permitted.
@tesla will suspend production
Minimum basic operations are permitted
https://t.co/GZtcBOHPHC
mdash; Alameda County Sheriff (@ACSOSheriffs) March 19, 2020
Meanwhile, the company massive factory near Reno, Nev
is still open and operational as usual
The Nevada gigafactory, as Tesla describes it, employs thousands of people who produce electric motors for the Model 3 and battery packs for
its portfolio of electric vehicles
People familiar with operations at the gigafactory told TechCrunch that managers are monitoring the situation closely.
Tesla said it has
enough liquidity to weather the shutdown caused by the COVID-19 pandemic
Its cash position at the end of the fourth quarter was $6.3 billion before its recent $2.3 billion capital raise.
We believe this level of
liquidity is sufficient to successfully navigate an extended period of uncertainty,& Tesla said.
The company hadavailable credit lines worth
about $3 billion, including working capital lines for all regions as well as financing for the expansion of its Shanghai factory at the end
of the fourth quarter of 2019.
The announcement caps an uncertain week that began March 16 after Alameda County ordered all nonessential
businesses to close, including bars, gyms and dine-in restaurants because of the global spread of COVID-19, a disease caused by the
Tesla factory and a number of its other facilities are located in and around Fremont, which is within Alameda County.
Tesla kept the Fremont
factory open despite the order, claiming that part of the company operations fell under an exemption in the county order
Tesla CEOElon Musk told employees in an email that the company would continue operations at the Fremont factory, where the automaker
assembles the Model S, Model X, Model 3 and now Model Y electric vehicles
Musk did tell employees they should not feel obligated to come to work if they &feel the slightest bit ill or even uncomfortable.
The
Alameda County Sheriff disagreed, and on March 17 tweeted that Tesla was not &essential.& The automaker still ignored the order and the
sheriff tweet.On Wednesday, employees received another email from human resources head Valerie Workman that the Fremont, Calif., factory was
still open for production, because it has had &conflicting guidance from different levels of government.
The email told employees to come to
work if their job is to produce, service, deliver or test its electric vehicles
Another email sent late Wednesday evening (and viewed by TechCrunch) reiterated to employees that the factory would remain open to
&essential& workers, but special efforts were being taken to lessen the spread of COVID-19, includinghanding out masks to be worn throughout
the day, taking temperatures prior to entry, adding more hygiene stations inside the facility, rearranging operations to promote social
distancing as much as possible and increasing cleaning frequency of all work areas.
Here a portion of the statement:
In the past few days,
we have met with local, state and federal officials
We have followed and are continuing to follow all legal directions and safety guidelines with respect to the operations of our facilities,
and have honored the Federal Government direction to continue operating
Despite taking all known health precautions, continued operations in certain locations has caused challenges for our employees, their
families and our suppliers.
As such, we have decided to temporarily suspend production at our factory in Fremont, from end of day March 23,
which will allow an orderly shutdown
Basic operations will continue in order to support our vehicle and energy service operations and charging infrastructure, as directed by the
local, state and federal authorities
Our factory in New York will temporarily suspend production as well, except for those parts and supplies necessary for service,
infrastructure and critical supply chains
Operations of our others facilities will continue, including Nevada and our service and Supercharging network.
Tesla also said that it will
start ''touchless deliveries& in many locations to allow customers to take delivery of their vehicle &in a seamless and safe way.
The
vehicles will be placed in a delivery parking lot
Customers will be able to unlock the vehicles using the Tesla app and then sign the remaining paperwork necessary to take ownership
Customers will need to return that paperwork to an on-site drop-off location prior to leaving, Tesla said.
Workers prep for deliveries
As
Tesla winds down the Fremont factory, the activity is shifting to its delivery operations
Tesla has a history of stacking deliveries at the end of a quarter
And this one is no different, COVID-19 or not.
Current Tesla employees have told TechCrunch that communication about operations in
California, one of its biggest markets, has been inconsistent and unclear as the COVID-19 pandemic has spread
Employees, who requested anonymity for fear of losing their jobs described a lack of access to disinfectant, and said there were not clear
or proper protocols put in place to safeguard workers in sales, service and delivery.
The lack of guidance for Tesla employees who work in
delivery and sales throughout the United States has prompted some to take matters into their own hands because there is &zero protective
gear.
Employees told TechCrunch there is no disinfectant or gloves for delivery drivers, service or sales staff at some of its busiest
There has been little communication with upper management, as well
Employees have bought hand sanitizer, gloves and disinfectant for co-workers as they prepare for an onslaught of vehicles before the quarter
For instance, employees were told to expect 1,000 cars in Costa Mesa alone in the next three days
Other delivery hubs are expected to be busy as well.
The touchless delivery system began Wednesday in places like Costa Mesa
Some employees are worried about the risk of exposure to COVID because customers are still walking into locations because touchless delivery
isn''t possible in all cases because of trade-ins and other reasons, such as financing.
