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California Gives Tesla Fremont a Special Status

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Workers at Tesla's Fremont factory are deemed essential and are not impacted by California's latest restrictions to curb a new surge in the virus infections, the state health department said on Friday.

“The Critical Manufacturing Sector identifies several industries to serve as the core of the sector including Transportation Equipment Manufacturing Products,” the office said.

This is a big relief for Tesla workers who can continue working by keeping their jobs at Tesla's Fremont plant and feed their families. This is also good news for Tesla shareholders, as it gives Tesla a chance to meet its 500,000 vehicle delivery goal for 2020.

CFO Zachary Kirkhorn said during a third-quarter earnings call that Tesla is still aiming for deliveries of 500,000 electric vehicles in 2020. Even with a new, Shanghai factory online this year, that number still proves a challenge to Musk’s car company. In 2019, Tesla delivered approximately 367,500 vehicles.

Several days ago Torque News learned that Tesla has hired 2,000 sales and delivery "executives" to speed up its end of the year push to meet its 500,000 vehicle delivery 2020 goal. Tesla has to build and sell 180,000 vehicles in the fourth quarter to meet its 2020 goal.

California’s governor imposed a curfew on social gatherings and other nonessential activities last Thursday. According to these new restrictions in California beginning today, the stay-at-home order prohibits a non-essential business from 10 p.m. until 5 a.m. each day and applies in the majority of the state’s counties, including Alameda County, where Tesla’s factory is located.

In response to a CNBC inquiry about how the curfew would impact Tesla’s employees, the CPHD wrote:

“The Limited Stay at Home Order does not apply to these employees as they are deemed essential workers - manufacturing is listed as an essential workforce. You can find more here. The Critical Manufacturing Sector identifies several industries to serve as the core of the sector including Transportation Equipment Manufacturing Products. While operating, this sector must follow industry guidance for manufacturing.”

Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.