Tesla’s Fremont factory must close, not an ‘essential business’: County Sheriff

Tesla building

Despite earlier reports that Tesla’s Fremont factory in California had been deemed an “essential business” and would be allowed to remain operational during a shelter in place order, the county sheriff’s office said Tuesday Tesla must shut down the factory.

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Tesla is not an essential business as defined in the Alameda County Health Order. Tesla can maintain minimum basic operations per the Alameda County Health Order,” a spokesman said

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If Tesla fails to comply with the order to help curb the spread of coronavirus COVID-19, it would be violation of the California health and safety code, which could result in fines, imprisonment, or both, according to Reuters.

Tesla shares dropped in after-hours trading after the news broke this evening. Depending on the length of the closure of the factory, there could be an impact on deliveries in North America in the first and second quarter. Some of that could be offset by Chinese deliveries, which have picked up again after the closure and reopening of Giga Shanghai last month.

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