TSLA Stock Up 1% in Pre-market as Tesla Says It Got Approval to Reopen Fremont Factory

UTC by Bhushan Akolkar · 3 min read
TSLA Stock Up 1% in Pre-market as Tesla Says It Got Approval to Reopen Fremont Factory
Photo: Tesla

The latest approval from Fremont health officials means Tesla could soon resume its production now which can create a positive impact for the investors ahead. Today in the pre-market Tesla (TSLA) stock is up.

Good news finally for Tesla Inc (NASDAQ: TSLA) investors as the company receives a fresh approval to start production at its Fremont factory in California. Tesla confirmed that having taken all the safety measures, the California county health official has given a nod. As a result, Tesla now has the local support to start full production from this week. Tesla (TSLA) stock has positively reacted to the news in the pre-market.

Thus, after a major production halt sue to the COVID-19 lockdown, Tesla can once again kickstart the activity at its plant. Earlier, Elon Musk was reportedly in an argument with the county official over the reopening of the factory. After the county said that electric-car-maker did not meet the criteria to reopen, Musk even threatened to move the company headquarters to another location like Nevada or Texas.

Laurie Shelby, the company’s environmental, health, and safety vice president, appraised the Tesla staff of this development. Currently, Tesla employs over 11,000 people at its Fremont factory located in California.

Rift between Elon Musk and Alameda County Officials

With the Alameda County health official’s resistance to reopening Tesla’s Fremont factory. Elon Musk‘s Tesla sued the county. Earlier in March, when Tesla was resisting to vacant the factory, Fremont officials sought an explanation from Alameda County Officials whether the company was an essential business.

The county’s health officer Erica Pan also noted that Tesla’s Fremont Factory could be a public health risk. However, Musk’s recent threats of shifting his base have drawn mixed reactions. The U.S. President Donald Trump has spoken in favor of Tesla for reopening their factory. However, some California politicians have rebuked the CEO.

Speaking on Tesla’s latest approval, California Governor Gavin Newsom said that they are not giving preferential treatment to the company. He said:

“It’s a spirit of collaboration. Those that continue to pursue things that put people in harm’s risk, you have to have stepped-up efforts of enforcement and sanction. But that was not the case in respect to Tesla. They did work with Alameda County partners. And Alameda County health officials are satisfied that they are likely to reach those thresholds as early as Monday.”

Tesla (TSLA) Stock Movement: Up in Pre-market

On Friday’s close, May 15, Tesla (TSLA) stock was trading just under $800 at $799.17. Tesla has been one of the hot bets for Wall Street investors in 2020. Emmanuel Rosner at Deutsche Bank has given a hold rating for Tesla up to $850. In a note to investors, Rosner wrote:

“While management provided few details about its 2Q/2020 outlook, it believes Fremont production can ramp back up very quickly given its experience in China and that the supply chain is already coming back online. Tesla’s record backlog of orders should provide strong pipeline of deliveries regardless of near-term conditions.”

Today, as the pre-market hours have begun, Tesla (TSLA) stock has entered the green zone. Now it is around 1% up. TSLA is trading at $810.00 currently in the pre-market.

Business News, Market News, News, Stocks, Wall Street
Bhushan Akolkar
Author: Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

Share this article

Related Articles