Elon Musk threatens to move Tesla HQ out of California over coronavirus restrictions

CNBC’s “Squawk Box” discuss the latest on Tesla including Model 3 sales and CEO Elon Musk’s latest comments about the coronavirus pandemic.

Tesla says it has started the process to resume operations and released a plan to bring its employees and contractors back to work, amid an escalating dispute with local health authorities in California over a shelter-in-place order that has kept the automaker’s Fremont factory idle during the coronavirus pandemic.

“Our restart plan is the result of months of careful planning and preparation,” Tesla’s leadership said in a blog post titled “Getting Back to Work.” “It was modeled after the comprehensive return to work plan we established at our Shanghai Gigafactory, which has seen smooth and healthy operations for the last three months.”

Tesla workers are currently scheduled for shifts this week in Fremont to manufacture Model 3, S and X vehicles, according to company correspondence reviewed by CNBC. Those shifts were scheduled before CEO Elon Musk threatened Saturday to pull Tesla out of California in a dispute over the Fremont factory shutdown.

Tesla has filed a lawsuit against California’s Alameda County, asking a federal court to invalidate orders by local authorities that have prevented the automaker from resuming production.

Tesla argues in the company blog post that the Fremont factory falls under Gov. Gavin Newsom’s essential workforce guidelines and should resume production because it is critical national infrastructure.

“Contrary to the Governor’s recent guidance and support from the City of Fremont, Alameda County is insisting we should not resume operations,” Tesla’s leadership said in the blog post. “This is not for lack of trying or transparency since we have met with and collaborated on our restart plans with the Alameda County Health Care Services Agency.”

Alameda County authorities could not be immediately reached for comment.

Each Tesla facility has a back-to-work plan and a response team, which includes a physician, is establishing health and safety guidelines based on location and job-specific risk assessments, according to the company. In some cases, partitions and barriers have been added to minimize employee interactions.

Tesla’s re-opening plan outlines several safety guidelines and protocols for Tesla workers, including increasing cleaning and disinfection in work areas; enforcing social distancing; controlling access to facilities and imposing temperature checks at some locations.

“We are taking the time we need to get our personnel properly trained before they begin work and all employees must complete an online video training before returning to work at any Tesla facility,” the company said.

The company will also adjust work shifts to control the number of people in one work space and cut shuttle occupancy in half. The company says it will provide personal protective equipment to workers and implement touchless services for people who have direct contact with customers.

Tesla workers who can work from home will continue to do so but those needed for essential operations in the production facilities will come back to work gradually.

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