By
Bena Ilyas
April 23rd, 2024
On Tuesday, the Bay Area’s local sheriffs’ department ordered the Tesla factory shutdown, but the plant with its 10,000 employees is still operating. TSLA stock is down.
One would think that Tesla Inc (NASDAQ: TSLA) stock has already been to the lowest possible level. However, it still continues sliding, reaching the price below $400. Yesterday, TSLA stock closed at $361.22, 16.03% down. This anti record movement resulted not only from coronavirus that has undermined the whole market but also from the statement of Bay Area’s Alameda County. On Tuesday, the local sheriffs’ department ordered the Tesla factory shutdown and called the company a “nonessential business.”
Will Tesla Factory Stop its Activity?
Earlier, seven Bay Area counties ordered 7 million residents to shelter in place for three weeks. Besides, they ordered businesses to send employees home as a way to prevent further spread of COVID-19. Tesla is subject to this order, as it does not cover only pharmacies, banks, and supermarkets.
Alameda County spokesman Sgt. Ray Kelly stated:
“If Tesla was a hospital, if Tesla was a laundromat, if Tesla was a mechanic shop, we wouldn’t be having this conversation. But Tesla makes cars, and that’s not essential for us to get through this health crisis.”
The car manufacture can keep conducting “minimum basic operations.” Those include operations connected with security, payroll processing, and employee benefits.
Notably, Tesla’s factory in Fremont is the only Tesla plant in the U.S. It employs about 10,000 people. As Elon Musk said just before the Tesla factory shutdown order, he would like to continue working. But employees are not obliged to come if they feel bad.
He stated:
“My frank opinion is that the harm from the coronavirus panic far exceeds that of the virus itself. If you feel the slightest bit ill or even uncomfortable, please do not feel obligated to come to work.”
Further, Tesla stated that the federal government had “directed that all National Critical Infrastructure continue to operate during this global pandemic.” According to the company, this infrastructure included auto manufacturing.
Tesla (TSLA) Stock in Red
Tesla is experiencing hard times. Even the deliveries of its newest Model Y vehicles did not change the direction of the TSLA stock movement.
On Monday, Tesla stock plummeted 18.58% from its previous close of $546.62 to $445.07. The next day, it was trading at $448.40 in the early hours, with the day high reaching $456.12 later. On Wednesday, Tesla stock tanked by another 16.03% and closed at $361.22. However, the shares were $363.51, or 0.63% up in after-hours trading.
As for today, Tesla stock was $369.00 during pre-market trading. At the moment of writing, it makes up $370.20 per share.