Tesla shutting down factories as COVID-19 spreads in the US
After downplaying the threat of coronavirus disease COVID-19 for several weeks, Elon Musk has finally taken some action to combat the situation. Tesla, the electric automaker owned by the billionaire, has announced that it is shutting down factories in California and New York to protect workers from the deadly pandemic and to prevent it from growing worse. Here's all about it.
Car-manufacturing unit suspending operations starting March 24
Tesla will close its car manufacturing unit in Fremont, California, starting the end of Monday, March 23. "You should continue to report to your current location till the end of day Monday," a company email to employees said, noting that starting Tuesday, the company will transition to "minimum basic operations to support vehicle and energy service operations and customers, and supercharging infrastructure."
Similarly, solar panel factory will also suspend operations
Like the one in California, Tesla's solar panel factory in New York will also suspend most of its operations in Buffalo, New York. However, at the time of writing, it was not exactly clear if the factory would close immediately or on March 23.
Paid leave for hourly employees during suspended operations
Tesla's email noted that its hourly employees will "continue to receive their normal pay through Monday, after which point we will provide paid leave during suspended operations." Meanwhile, those "working from home should continue to do so and consider it business as usual. We understand you will have many questions and we will be providing you with additional resources," the message added.
Continued operations caused challenges, Tesla said
In an official press release, the company said, "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."
Nevada factory still remains open
The action from Tesla comes after the company failed to gain exemption from the 'shelter in place' order that went into effect days ago in California's Alameda County (where the Fremont factory is located) due to the coronavirus pandemic. Notably, the company's Gigafactory in Nevada would still continue operations as usual, despite the recent call by the state's governor to close all nonessential businesses.
Deliveries, however, will not be affected
Now, the closure of the two factories could lead to a slowdown in production, but that doesn't mean the company would stop doing deliveries. Tesla says it will enable a 'touchless' delivery experience allowing customers to take deliveries without coming in contact with anyone. Basically, they can use the Tesla app to unlock their new car, sign delivery papers, and drop them off later.
