While automakers have been forced to either suspend production significantly or shift their manufacturing capacity to produce coronavirus-related equipment (such as respirators), not all auto companies have been happy about this change. Elon Musk’s Tesla (NASDAQ:TSLA) has gone on to vow that it will file a lawsuit with specific Californian counties that had prevented the car company from operating its factories at full capacity. On Wednesday, however, it seems that Tesla has dropped this lawsuit altogether.
The car company first filed a lawsuit earlier in May when the Alameda Country refused to allow Tesla to continue production of its cars. More specifically, Tesla argued that the county had violated the equal protection and due process clauses of the 14th amendment. The factories had originally been closed back in March following a state-wide order for workers to stay at home. Even after providing updated manufacturing guidance on how workers would operate, five other countries in California insisted that Tesla keep its factories closed indefinitely.
“Tesla is filing a lawsuit against Alameda County immediately. The unelected & ignorant “Interim Health Officer” of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense,” tweeted Elon Musk earlier this month. As of May 20th, however, the Alameda Country Public Health Department responded that they had come to an agreement with the automaker. “We will be working with the Fremont Police Department to verify Tesla is adhering to physical distancing and that agreed upon health and safety measures are in place for the safety of their workers as they prepare for full production.”
While Tesla has mentioned before that it was still ramping up production, anonymous employees have told news outlets that the company has been operating at full capacity in some factories earlier this month. President Trump has even gone on to personally side with Elon Musk over the matter, tweeting that California should let Tesla’s factories resume operations.
Shares of Tesla didn’t respond much to this piece of news, which the stock staying mostly the same during Wednesday’s trading session. Despite the effects of the pandemic, Tesla has done quite well for itself during this time, with its stock having recovered most of its modest losses seen earlier this year. At the moment, Tesla is coming quite close to being listed on the S&P 500, and currently is one of the largest automakers in the world. Overall, the once battered automaker seems like it will have a reasonable 2020 in spite of this pandemic.
Tesla Company Profile
Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. It sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. The Tesla Roadster debuted in 2008, Model S in 2012, Model X in 2015, Model 3 in 2017, and Model Y in 2020. Global deliveries in 2019 were 367,656 units. Tesla went public in 2010 and employs about 50,000 people. – Warrior Trading News