Elon Musk Slams the Alameda County for its Lockdown Rules
Elon Musk stirred the tech world over the weekends when he tweeted against the County of Alameda. The Tesla boss said that he will be filing a lawsuit against the officials of the county for their lockdown measures.
The tweet blew the internet and raised debates over it was actually necessary for the technology company.
The electric car maker has filed a lawsuit against Alameda County where Tesla’s Fremont factory is based.
Since March 23, the factory underwent closure in compliance with the lockdown restrictions of the area. The orders are in line with the efforts of the state to curb the spread of the coronavirus.
In the lawsuit, Elon Musk’s company alleged that the shutdown ignores the previous orders of California state governor Gavin Newsom. The said order from the governor gives permission to business in crucial infrastructure industries.
According to technology news, the electric vehicle manufacturer is looking to void the shutdown order.
Aside from that, Tesla CEO Elon Musk has also threatened to move the company’s headquarters.
In his tweet, Musk said that he’s looking to transfer the Tesla’s headquarters to Texas or Nevada. Adding that the stay of the main manufacturing facility in Fremont will depend on how the state treats it.
The billionaire also noted that it is already the last carmaker left standing in the state of California.
However, the issue further blew up when Lorena Gonzalez, California’s Assemblywoman, tweeted “F— Elon Musk”.
The company’s share prices immediately suffered in the after-hours thanks to the tweets. Investors worry about the cash burn from the issue.
Weakening Sales
Well, that’s not the only drama that’s in the headlines is the dramatic 64% drop in sales in China. Earlier today, the China Passenger Car Association reported that Model 3 sedan sales fell from 10,160 in March to just 3,635 in April.
The company’s Model 3 sedans are its latest innovations in modern technology and are in the lower price tag ranges.
The company has yet to give its statement regarding the drop in Model 3 sales.
In Tesla’s earnings call in April, Elon Musk said that the company will be lowering Model 3 prices in China.
Musk said that Tesla is making quick progress in lowering production costs in its Shanghai Gigafactory. The CEO added that prices will be below the subsidy limit in China.
The lockdown following the initial outbreak in China has greatly hurt Tesla compared to other automakers. The electric car maker had to temporarily shut down its factory and stores earlier this year in China.
