Autogiant and progressive icon Tesla have once again been in the news, this time for filing a lawsuit to sue the authorities in California. What might this mean for the Giant?
Tesla and California go hand in hand, the land of the panini and the land of progression. This is reflected as 40% of all model s sales in the US last year found their way in to California. But what has happened to set these two apart? What could it mean for the companies future?
Well it has to do with that old pain the Covid-19 pandemic. Back in mid march the state were putting in to place restrictions and measure's to stop the spread of the disease. As a result of this Alameda County, where one of Tesla's plants responsible for the Model 3 and Model Y is, ordered the plant to cease production and close. Initially Tesla tried to fight this and remain open, but where later told that car production was not essential business.
Well it's now a fair few weeks down the line and places are beginning to be re-opened and restriction's relaxed. Well Tesla has been working on reopening plans, including working with public health officials to ensure that the factory can be reopened safely for all workers. But low and behold the officials don't like this, and wouldn't allow the plant to open, so Tesla have filed a lawsuit against the county with San Fran's Federal court.
To add fuel to the fire Elon (Tesla CEO) wrote on twitter : "Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen [sic] on how Tesla is treated in the future. Tesla is the last carmaker left in CA"
It is true that Tesla does have a huge giga-factory in the state of Nevada, and has been considering opening some kind of factory in Texas at some point. So could this mean the end to Tesla and California's relationship, well the people, no I don't think so. But this could easily have been the last straw for a very unpredictable CEO...