Tesla (NASDAQ:TSLA) CEO Elon Musk, with 34-M Twitter followers, has openly defied an order from the Alameda County Health Department to conduct only minimum operations at the company’s EV plant in Fremont, California, that normally employs 10,000 people. On Twitter he made derisive comments about the county’s Top health official. He has called the stay-home restrictions “fascist” and said they rob The People of Freedom.
While Mr. Musk is getting support on social media from his devoted followers and even President Trump, his actions might cost him in the long run. Many who buy his expensive EVs do so because they tilt to the left politically and want to make a statement about protecting the environment. And they have criticized Mr. Musk in the past when he’s allied too closely with President Trump.
Still, Mr. Musk is admired by American business owners who believe government should not be telling them to stay closed if they are willing to take precautions to reopen safely.
Mr. Musk’s fans admire his savvy and how he has shaken up the auto sector and launched rockets into space, will love how he has resisted authorities, a business and law professor at the University of Michigan.
When he opened the Fremont plant in Y 2010 at a recently shuttered factory that was jointly run by General Motors (NYSE:GM)and Toyota (NYSE:TM), he was embraced with open arms by another California legend, then-Gov. Arnold Schwarzenegger.
The relationship has been fruitful for Tesla, netting Mr. Musk hundreds of millions of dollars in subsidies, including 9 yrs of sales tax exemptions totaling nearly $250-M. The LA-T’s reported in Y 2015 that Tesla had reaped $4.9-B in government subsidies nationwide.
Governor Gavin Newsom, a former Mayor of San Francisco, said Monday that he has had a yrs-long relationship with CEO Musk, noting that Tesla is “a company that this state has substantially supported for now many, many years” and said he anticipated the relationship would continue.
Tesla’s factory reopened Monday with CEO Musk daring local authorities to arrest him. The plant continued operations Tuesday. The company met a Monday deadline to submit a site-specific plan to protect worker safety, which Alameda County’s Public Health Department is reviewing, said a county spokeswoman.
The department has deemed the factory a non-essential business that cannot fully open under C-19 coronavirus chaos restrictions. The plant in Fremont, a city of more than 230,000 people, had been closed since 23 March.
Tesla says it has a plan to maintain worker safety.
Monday, the US major stock market indexes finished at: DJIA -457.21 at 23764.78, NAS Comp -189.79 to 9002.57, S&P 500 -60.20 to 2869.99
Volume: Trade on the NYSE came in at 940-B/shares exchanged
- NAS Comp +0.3% YTD
- S&P 500 -11.2% YTD
- DJIA -16.7% YTD
- Russell 2000 -23.6% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish with a Very Bullish bias.
Looking Ahead: Investors will receive the Producer Price Index (PPI) for April and the weekly MBA Mortgage Applications Index Wednesday.
Have a healthy day, Keep the Faith!