TSLA Tesla Inc

By Tim Higgins 

Fremont, Calif., Police Chief Kimberly Petersen will meet with Tesla Inc. officials today to discuss with the auto maker its cooperation with a local government order directing nonessential businesses to shut down to combat the coronavirus pandemic.

The police announced the meeting through a message on Twitter. It follows days of confusion over whether the auto maker's U.S. factory should continue to operate after local authorities on Monday ordered activity limited in the region and residents to stay home to slow the spread of Covid-19, the disease caused by the novel coronavirus.

Tesla has continued to operate after the local sheriff's office said the factory wasn't essential, production should be halted and operations kept to a minimum. The county sheriff's spokesman has said the city of Fremont, where the factory is located, is responsible for enforcing the order.

Tesla didn't respond to a request for comment.

A shutdown could threaten Tesla's plan to boost deliveries by more than 36% this year, fueled in part by a new factory in China and the arrival of its Model Y compact sport-utility vehicle. The company marked the first deliveries of the Model Y this week in a tweet that included a video of the vehicle being built at the Fremont factory.

The auto maker isn't alone in facing calls to close among the spreading pandemic. General Motors Co., Ford Motor Co. and Fiat Chrysler Automobiles NV all announced plans Wednesday to suspend production at their U.S. factories until at least March 30 after facing pressure from the United Auto Workers union.

Tesla's U.S. car plant has been at the center of confusion this week over whether Chief Executive Elon Musk could continue to churn out cars amid local governments' orders restricting activities.

Initially, Alameda County said the factory wouldn't need to close. Then, on Tuesday, the sheriff's office said Tesla wasn't an essential business during the health crisis and would need to limit work to "minimum basic operations." The office said it needed to stop production.

Despite the sheriff's comments Tuesday, Tesla didn't halt work at Fremont. Employees were instructed to continue working, though those who felt uncomfortable were told they could take personal time off to stay away.

Tesla's stock had one of its worst days ever on Wednesday as shares fell 16%. They rebounded sharply on Thursday as work appeared to continue at the plant. Analysts have begun scaling back their lofty expectations for Tesla's performance this year as every auto maker is expected to take a hit from lost sales.

Mr. Musk has publicly questioned reactions to the coronavirus pandemic, calling the risk of panic generated by the crisis worse than the health risks of the disease.

The auto maker hasn't commented publicly about its efforts to keep workers safe. Earlier this year, Tesla closed its factory in Shanghai as part of the effort there to stop the spread of the virus.

On Twitter, Mr. Musk has responded to some of the criticism of his comments about the crisis. He said he would begin making ventilators if there is a shortage during the global pandemic.

He made the statement on Twitter late Wednesday in California, noting Tesla vehicles are built with sophisticated air-filter systems and that his other company, SpaceX, features such devices in the life support systems on some of its spacecraft. Ventilators are seen as crucial medical device to help treat the symptoms of Covid-19 by helping deliver oxygen to failing lungs.

"Ventilators are not difficult, but cannot be produced instantly," he wrote in response to one Twitter user. "Which hospitals have these shortages you speak of right now?"

Early Thursday, New York City Mayor Bill de Blasio responded on Twitter, saying the city would reach out directly because it needed his help. "New York City is buying!" he wrote. "Our country is facing a drastic shortage and we need ventilators ASAP -- we need thousands in this city over the next few weeks."

Write to Tim Higgins at Tim.Higgins@WSJ.com

(END) Dow Jones Newswires

March 19, 2020 14:38 ET (18:38 GMT)

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