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Westlake Legal Group > Posts tagged "Fremont (Calif)"

Tesla Deliveries Slipped in Second Quarter as Pandemic Hit

Westlake Legal Group tesla-deliveries-slipped-in-second-quarter-as-pandemic-hit Tesla Deliveries Slipped in Second Quarter as Pandemic Hit Tesla Motors Inc Stocks and Bonds Musk, Elon Fremont (Calif) Factories and Manufacturing Electric and Hybrid Vehicles Coronavirus Reopenings Coronavirus (2019-nCoV) Company Reports Automobiles Austin (Tex)
Westlake Legal Group 01TESLA1-facebookJumbo Tesla Deliveries Slipped in Second Quarter as Pandemic Hit Tesla Motors Inc Stocks and Bonds Musk, Elon Fremont (Calif) Factories and Manufacturing Electric and Hybrid Vehicles Coronavirus Reopenings Coronavirus (2019-nCoV) Company Reports Automobiles Austin (Tex)

Tesla said on Thursday that it delivered fewer electric cars in the second quarter as sales plunged in much of the world because of the coronavirus pandemic.

The company said it delivered 90,650 cars in the quarter, down 5 percent from the 95,365 it sold in the same period in 2019. It sold 88,496 cars in the first quarter of 2020, when most of the company’s operations were largely unaffected by the virus.

Local officials forced Tesla to shut down its main car factory, in Fremont, Calif., in March. Two months later, the company restarted production earlier than it was authorized to do so after its chief executive, Elon Musk, criticized stay-at-home orders as “fascist.”

Tesla shares jumped 8 percent in early trading before the stock market opened on the news of its delivery numbers. The company’s stock has soared in recent months, and has been setting new highs this week. At its current price, Tesla has a market value of nearly $210 billion. That’s more than the value of Toyota Motor, which was previously the world’s most valuable automaker, and three times the combined value of General Motors and Ford Motor.

While traditional automakers sell vastly more cars and earn billions of dollars more in profit than Tesla, Wall Street has grown increasingly optimistic about Tesla’s prospects this year. Some investors consider the company to be at the vanguard of the transition from petroleum-fueled cars and trucks to electric vehicles — a change that they believe older companies like Toyota, G.M. and Ford are ill prepared for.

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Updated 2020-07-02T11:35:30.662Z

Tesla has also seemed to overcome problems that had hobbled its ability to bring new cars to market and scale up manufacturing. The company successfully opened a second factory, in Shanghai, and has started building a third, near Berlin. It also started delivering the Model Y, a sport-utility vehicle that is expected to sell well because it starts at about $53,000, which is roughly what comparable luxury gasoline vehicles sell for.

Further, Tesla reported a profit in the first quarter, is generating cash from its operations and appears to have stabilized its financial situation. It ended the first quarter with $8 billion in cash, a dramatic turnaround for a company that had struggled to raise money at favorable terms in 2019.

“If you go back a year and a half, the question was, can these guys make it with the kind of capital expenditures they need to do,” said Joseph Osha, an analyst at JMP Securities. “That’s no longer a question.”

The company is also preparing to accelerate its expansion and is in the early stages of identifying a location for a fourth car factory. Tesla appears to be eyeing a site near Austin, Texas. In a recent county filing, the company said it could begin construction in the third quarter of this year at a 2,100-acre site that is currently occupied by a concrete plant.

Tesla continues to face challenges, however. It still relies on sales of environmental credits to other automakers to generate much of its profit. In a recent email to employees, Mr. Musk said breaking even in the second quarter “is looking super tight.”


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  • Frequently Asked Questions and Advice

    Updated June 30, 2020

    • What are the symptoms of coronavirus?

      Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.

    • Is it harder to exercise while wearing a mask?

      A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.

    • I’ve heard about a treatment called dexamethasone. Does it work?

      The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.

    • What is pandemic paid leave?

      The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.

    • Does asymptomatic transmission of Covid-19 happen?

      So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.

    • What’s the risk of catching coronavirus from a surface?

      Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.

    • How does blood type influence coronavirus?

      A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.

    • How many people have lost their jobs due to coronavirus in the U.S.?

      The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.

    • How can I protect myself while flying?

      If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)

    • What should I do if I feel sick?

      If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.


Many of Tesla’s customers rave about their cars — and many others pine for the luxury vehicles on social media. But experts have dinged the company for selling cars with obvious flaws and quality problems. Last month Tesla ranked last in a closely watched annual survey of automotive quality by J.D. Power, the first time its cars were included in that report. J.D. Power found customers reported 250 problems for every 100 cars sold, worse than 31 other automakers and well below the industry average of 166.

Further, while sales in China and other overseas markets are holding up, the strength of demand in the critical U.S. market remains unclear, especially as coronavirus cases surge across many states in the West and South, including two big Tesla markets, California and Florida.

In May, when much of California was under stay-at-home orders, Tesla sold just 1,447 vehicles in that state, a drop of 70 percent from a year ago, according to the Dominion Cross-Sell Report.

Tesla is scheduled to report its second quarter earnings later this month.

Niraj Chokshi contributed reporting.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Coronavirus Wrecked Tesla’s Momentum and Elon Musk Is Furious

A few months ago, everything seemed to be going Elon Musk’s way, as he presided over an upstart electric car company that was worth more than General Motors, Ford Motor and Fiat Chrysler combined.

That company, Tesla, had reported profits two quarters in a row, proving that it could earn money even as it grew. Its stock was surging. Mr. Musk opened a factory in China and was planning another in Germany. And his other business, SpaceX, was poised to become the first to ferry NASA astronauts to orbit from American soil since 2011, a trip scheduled for the end of this month.

But the coronavirus set Mr. Musk off. Society’s response to the pandemic was “dumb” and a “panic,” he said, arguing that the threat is overstated. And government stay-at-home orders were, in his view, unnecessarily stalling his plans to revolutionize the auto industry and help solve climate change. He attacked local officials in the San Francisco Bay Area for not letting him reopen Tesla’s factory, which he did this week anyway, in defiance of their instructions.

Mr. Musk, the billionaire entrepreneur who co-founded PayPal, has always been volatile. His latest attacks and statements have raised questions about Tesla’s financial health and his own judgment, but they also reflect a recognition of the influence he wields as one of the technology industry’s best-known iconoclasts.

ImageWestlake Legal Group merlin_166780917_428c1709-77de-4500-8aff-ecba3558009a-articleLarge Coronavirus Wrecked Tesla’s Momentum and Elon Musk Is Furious Tesla Motors Inc Shutdowns (Institutional) Newsom, Gavin Musk, Elon Local government High Net Worth Individuals Fremont (Calif) Factories and Manufacturing Electric and Hybrid Vehicles Coronavirus (2019-nCoV) Automobiles Alameda County (Calif)
Credit…Aly Song/Reuters

“This is somebody who knows that what he says gets heard across the globe, and tries to make a point about why he doesn’t take system-level constraints as a given,” said Rahul Kapoor, a professor of management at the University of Pennsylvania’s Wharton School.

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Mr. Musk’s anger was stoked in March when local officials ordered Tesla to close its factory, in Fremont, Calif., just as the company was poised to accelerate production of a highly anticipated new sport utility vehicle, the Model Y.

Less than a year earlier, the company had been desperate for cash, and Wall Street had grown increasingly skeptical that Tesla could become anything more than a maker of luxury cars that only a sliver of humanity could afford. But Tesla’s fortunes had started to turn before the pandemic.

In October, the company announced a quarterly profit, a sign that it had solved production problems. Tesla’s stock began a long, astonishing rally. Shares peaked at $917 in February, up from $350 only three months before. Despite suffering along with the broader market in March and April, the stock closed at $790.96 a share on Wednesday, valuing the company at about $146 billion. By contrast, investors value G.M., which produces many more cars than Tesla, at less than $31 billion.

By March, Tesla was on a tear. Despite being slowed by the outbreak in China, the new Shanghai factory had reopened. In Europe, Tesla’s Model 3 sedan was outselling cars made by automakers like Volkswagen. The carmaker had just begun deliveries of the Model Y, which starts at about $53,000, in the ballpark of comparable S.U.V.s from BMW and Mercedes-Benz.

But Mr. Musk’s dreams of dominating the car industry were put on hold when Alameda County forced the Fremont plant, which brings in most of the company’s revenue, to shut down in late March.

Credit…Jim Wilson/The New York Times
Credit…Jim Wilson/The New York Times

Mr. Musk resisted closing the plant, and in a late-April call with analysts called stay-at-home orders “fascist.” “They’re breaking people’s freedoms in ways that are wrong and are not why people came here or built this country,” said Mr. Musk, who is a native of South Africa.

That week, he posted several odd messages on Twitter. Tesla’s stock was “too high,” he said, and added that he would sell “almost all physical possessions,” including his homes.

A few days later, Mr. Musk said his new son would be named “X Æ A-12” Musk. He and his girlfriend, the singer and songwriter Claire Boucher, better known as Grimes, have offered differing pronunciations of the name.

Last week, Mr. Musk’s anger about the factory boiled over, and he threatened to move the factory out of California and sued the county in federal court. On Monday, Mr. Musk officially reopened the Fremont plant, to the frustration of some workers and county officials who had been negotiating a reopening plan with Tesla for weeks.

“I will be on the line with everyone else,” he wrote on Twitter on Monday. “If anyone is arrested, I ask that it only be me.”

Later that day, the county asked Tesla to cease operations until it reached an agreement with local officials. On Tuesday, the county said it had reviewed the plan and “held productive discussions” with Tesla. The county said that it had made safety recommendations and that if Tesla included them and public health conditions didn’t worsen, the company could reopen next week.

County officials did not suggest that they would hold Tesla to account for ignoring the order, but noted that the Fremont police would verify that Tesla was adhering to safety measures as workers “prepare for full production.”

On Tuesday, trucks were leaving the factory carrying cars and S.U.V.s as masked workers milled about. New cars were also parked in rows outside. The parking lot for employees was full.

Tesla and Mr. Musk did not respond to requests for comment.

President Trump, who has been pushing states to allow businesses to restart, voiced support for Mr. Musk, writing on Twitter on Tuesday that California should let Tesla reopen the plant “NOW.”

But the president’s statement is unlikely to sway California’s governor, Gavin Newsom, a Democrat, who has deferred to counties on such issues. The state has authorized manufacturing, but Mr. Newsom said Monday that “if a county doesn’t want to go as far,” local orders would prevail.

Mr. Musk’s decision to reopen the factory has put employees in a difficult position.

In an email sent on Monday, the company told employees that they may remain home but would not be paid if they had already used up their time off and might also lose unemployment benefits, as determined by local government agencies. On Wednesday, the company said employees who chose not to go in would not be penalized.

Credit…Stephen Lam/Reuters

Several Tesla employees, who asked to speak anonymously for fear of retribution, said the company was putting a priority on profits over people.

One man who worked at the factory on Tuesday said the company had checked employees’ temperatures at the start of his shift, distributed masks and rearranged a break room. But, he said, little had changed on the production line, where it is hard to avoid coming within six feet of others.

As the factory reopened, Mr. Musk thanked employees for making “the factory come back to life.”

“I have vastly more respect for someone who takes pride in doing a good job,” he said in an email, “whatever the profession, than some rich or famous person who does nothing useful.”

Jim Wilson contributed reporting.

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Tesla Tells Workers It Will Reopen California Factory Despite County Order

Westlake Legal Group tesla-tells-workers-it-will-reopen-california-factory-despite-county-order Tesla Tells Workers It Will Reopen California Factory Despite County Order Tesla Motors Inc Shutdowns (Institutional) Production Newsom, Gavin Musk, Elon Fremont (Calif) Electric and Hybrid Vehicles Coronavirus (2019-nCoV) Automobiles Alameda County (Calif)
Westlake Legal Group 08tesla1-facebookJumbo Tesla Tells Workers It Will Reopen California Factory Despite County Order Tesla Motors Inc Shutdowns (Institutional) Production Newsom, Gavin Musk, Elon Fremont (Calif) Electric and Hybrid Vehicles Coronavirus (2019-nCoV) Automobiles Alameda County (Calif)

Tesla told employees it would restart its factory in Fremont, Calif., on Friday. But the electric car company’s plans do not comply with a local government order that has not cleared large manufacturers to resume operations.

The company informed employees of the plan in companywide emails sent late Thursday and early Friday. The emails were sent after Gov. Gavin Newsom said manufacturing companies could restart operations even as other businesses were to stay closed because of the coronavirus pandemic. The governor also said that local governments could impose tougher restrictions than those in force statewide.

A coalition of health officials from six counties in the San Francisco Bay Area and the city of Berkeley have chosen to maintain to stricter limits in their most recent order, issued on Monday.

That order allowed construction, landscaping, agricultural and other outdoor businesses to resume operations, but restaurants, bars, or other indoor businesses “that do not permit physical distancing or have high-touch equipment” must remain closed.

“Tesla has been informed that they do not meet these criteria and must not reopen,” Neetu Balram, a spokeswoman for Alameda County, which includes Fremont, said in a statement. It was not clear on Friday afternoon whether the plant had restarted.

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Tesla representatives did not respond to a request for comment.

In an email to employees that was reviewed by The New York Times, the head of human resources for North America, Valerie Workman, said the company was in compliance with the local order and said 30 percent of Tesla’s normal staff members would be asked to report to work per shift. She cited Alameda County’s frequently asked questions document, saying that it said “distributed energy resource manufacturing, which includes electric vehicles, solar, and battery storage, is permitted to operate.”

Tesla is heavily dependent on the Fremont plant, which produces almost all of the vehicles it sells. A second plant, in Shanghai, reopened earlier this year after Chinese officials eased restrictions on business activity.

The company’s chief executive, Elon Musk, has been eager to reopen the Fremont plant and has criticized stay-at-home orders that forced the company to cease production in March. At first, Mr. Musk tried to keep the plant open but was forced to shut it down by local officials.

Late on Thursday, Mr. Musk told employees the plant would reopen on Friday. “I will be on the line personally helping wherever I can,” he wrote. “However, if you feel uncomfortable coming back to work at this time, please do not feel obligated to do so.”

In her email, Ms. Workman told employees that the company had put in place procedures to protect them from infection. “It is critical that you follow all safety protocols,” she said. “If you do not follow these protocols you will be sent home on unpaid leave. If you are sick or have concerns with safety coming to work, please stay home.”

Workers who choose not to work can use their paid time off or unpaid leave, the email said.

Ms. Balram said the county appreciated Tesla’s “proactive work” to be prepared when an reopening is allowed. But she added that “restoring all activities too soon risks a rapid spike in cases and would jeopardize the relative stability we’ve seen in our health and hospital systems.”

Health officers from the six counties and Berkeley have said they would ease restrictions once the total numbers of cases and hospitalized patients in the region flattens or declines, and when the area has sufficient ability to test for the virus. They also said the region needed to have adequate supplies of protective equipment for health workers, and the ability to investigate all cases and trace contacts among those who have been exposed or infected.

Other automakers are planning to resume production in the coming days. Toyota expects its plants to reopen on Monday. General Motors, Ford Motor and Fiat Chrysler have said they intended to start production May 18, though their parts operations will start as early as Monday.

Niraj Chokshi contributed reporting.

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