May 6 (UPI) — Tesla’s Fremont plant may be able to resume some operations earlier than expected as California takes the initiative to respond to a “phase II” outbreak of the new coronavirus, including the gradual opening of some less risky workplaces,media reported.
Given that Tesla’s Fremont plant is one of the largest manufacturing facilities in Alameda County, it is likely to be allowed to resume partial operations as California approaches a phase-ii new crown response. The latest change sits likely to signal the company’s ability to boost its second-quarter results.
The California government’s move is welcome, especially given the pressure on Tesla to reopen its Fremont plant. Musk expressed his displeasure with the shutdown in a series of comments on the first-quarter 2020 earnings conference call and On Twitter. Just last week, Tesla employees who had been suspended were told to stand by until the end of the month.
Tesla’s second-quarter results were largely related to the Fremont plant and its ability to resume operations. Although the Shanghai plant is fully producing the domestic Model 3, most of the company’s car production is still taking place at its California plant.
As a result, the longer California blocks Tesla from reopening its Fremont plant, the greater the challenge facing the electric car maker. This is particularly important given that other carmakers such as GM and Ford are expected to resume car production in the coming weeks.
For Tesla, the Alameda County closure came at a bad time. Just before the shutdown, Tesla began delivering model Y to customers, which is likely to sell more crossovers than the Model S, Model 3 and Model X combined. If Tesla can resume production and delivery of model Y this Friday, the company is likely to do another good in the second quarter. (Small)