Tesla appears to defy Bay Area shutdown, plans to operate Fremont factory
electrek.co
electrek.co
In the Alameda order which describes what "essential businesses" may remain open, the closest loophole I can see that might allow the Tesla factory to stay open is for "Airlines, taxis, and other private transportation providers providing transportation services necessary for Essential Activities and other purposes expressly authorized in this Order" [2]. I think it's more than a stretch to say that building new cars counts as transportation services. Repairing existing Teslas, sure. But I don't think Tesla should be allowed to keep building new cars. And I think if Elon cares about his workers' safety, and the safety of the world, he would ask his employees who are building new cars to stay home.
[0] https://www.reuters.com/article/us-health-coronavirus-tesla-... [1] https://www.cdc.gov/coronavirus/2019-ncov/symptoms-testing/s... [2] http://acphd.org/media/559658/health-officer-order-shelter-i...
Choice quote:
> I will personally be at work, but that's just me. Totally okay if you want to stay at home for any reason.
If this isn't the most peer-pressure-y way to tell people to show up, I don't know what is. The head of the company choosing to keep showing up to the office in the middle of an outbreak is the exact opposite of the precedent he should be setting right now.
Shoot, he can even tell people he's going to work from home and still secretly come to the office; people would understand. It's his company. Or he could've just not mentioned his plans at all. But by mentioning his plans, his direct reports will still show up, their direct reports will largely still show up, and anyone who doesn't want demerits on their performance reviews will all still show up. No different from an unlimited leave policy where people take no leave.
This is absolutely wrong. And hopefully illegal. And I definitely did cancel my Tesla order (RN112815329) because of it.
> Thousands of workers streamed into the factory Tuesday, many arriving by bus.
https://www.latimes.com/business/story/2020-03-18/coronaviru...
Tesla factory. One has to balance the economic damage and public health risk. And take into consideration that there is a public health risk from economic damage.
Planes evacuating people from Wuhan (also ~47 days ago) were having 1% of virus positives at the time.
I wouldn't have a problem being chosen to be one of the "skeleton crew". But I'd have a huge problem with the leader not doing the right thing for the group, namely having most people not come in.
The issue isn't just peer pressure, it's giving people the choice at all, pushing them into a conflict of interest. Telling them to do what makes them feels best seems reflexively correct to many people not just Musk, but it's not.
As far as new cars, there were no new cars for civilians during WWII, right?
(Also, the generic term for what AP does is lane centering, not lane assist.)
Minimum operations for auto manufacturers only include replacement parts.
https://www.kron4.com/news/san-francisco-cannabis-deemed-as-...
At this point all legal states deem it essential and most are legalizing delivery too.
I hope someone follows the money and prosecutes Elon if he exercised any financial influence here.
Because it's not like a restaurant that you can close and then open a month later with little consequence to the public. If you stop production of components or cars, you will not have them later on to restart the economy.
Most of the world uses lean manufacturing. Closing down some factories will mean that entire production chains will shut down. All the companies that service those chains will shut down. And when the virus passes, you will have no cars, no components for cars, and no easy way to restart manufacturing.
Even without shutdowns the entire system will take a huge hit dues to changes in demand. (Which will drop to nothing for some thing and skyrocket for others.)
[0] https://www.reuters.com/article/us-volkswagen-results-2019/v...
From cold calculus it might be worth risking a few more lives to keep the concern going.
TBH, I'm more worried about what will happen with Ford or GM if they have even a short outage. GM has massive ongoing obligations and a relatively weak balance sheet, afaik.
https://en.wikipedia.org/wiki/Value_of_life
Scroll down for a country-by-country breakdown.
I personally don't pass judgement on it.
That hits a nerve. A lot of restaurants are going to close and never reopen again as a result of this lockdown.
In Europe, losing your job does not mean losing your health nor your finances.
It does if you're freelance, which a lot of the events industry is. Or if you work for a small business that folds as soon as it has no business.
Electric cars are fungible, social fabric is not.
So we can lose Tesla and be fine with remaining electric car manufacturers or new ones. In contrast, losing a long-term social hub is a lasting negative impact.
This applies just as much to anything food-related (grocery or restaurant); maybe moreso because most of what a restaurant needs (or farm/ranch/fishery could produce) is not as shelf-stable as most car parts.
Interesting. VW, Daimler, Lamborghini, Ferrari, FCA, PSA all are stopping production.
Easy answer if you're Musk: just pay them to stay home.
Pretty much a certainty given politics in the US.
Taking this one step further, auto repair businesses can't very well repair cars if there are no parts available, and those parts come from Fremont. Therefore, the Tesla factory would (at least in part) theoretically already qualify for an exemption under the existing order.
One could also make the argument that (given that private transportation has been deemed an "essential" service) replacing worn out or destroyed cars is essential, and thus manufacturing finished cars qualifies for an exemption.
The factory that makes hydraulic fluid for Tesla's presses that stamp out car parts is also part of the transportation supply chain, As is the oil refinery that supplies feedstock to the hydraulic oil vendor.
I honestly think the thing we will learn from this pandemic is that we can't stop a modern economy like this for a couple months without also incurring significant loss of life. If this shutdown extends more than a month we're going to see supplies start to run low and people will panic. Grocery stores around me (large northeastern city) are already having trouble restocking.
At the same time, I hope Tesla is going as far as they can to protect their workers... and that will probably be the real story at the end of all of this, "What companies did to protect their workers and the economy around them."
We're heading into the next great depression, and it's going to take a New Deal type of effort to recover. Trump is actually in a remarkably similar position to Hoover in all this too; so it's not unprecedented to be headed into something like this with a nincompoop at the helm.
We need to "Flatten the curve" enough to spread out critical care capacity surges without over-achieving to the extent we cause even more harm long-term to the world's poorest populations. We need a constant gradual rate of CV19 spread. If we "full stop" CV19's spread now, when social distancing and lockdowns lift, we'll be facing Wuhan/Italy surges again.
(Just to be clear, I'm not defending Tesla here. They have the choice to shutdown regardless of government order or exemptions)
If the largest business in the area was producing nail varnish, you might find that "beauticians are staying open too based upon the same exemption" - it would still be special treament because neither of them should be open.
Yes, I believe that is rather the point of the exemptions laid out in the order. The health commissioner is trying to prevent infections of Covid-19, not destroy the economy.
Tell me how you feel about drycleaners. They are also explicitly exempted as businesses providing essential services.
Actually, now that I think about it, you're right: It is more important to have a crisply-pressed suit than transportation to the grocery store for food. Grab the pitchforks, let's get Elon!
And I suspect their other products (power wall), etc, are more upper middle class, unless there are new apartment communities using it.
Shutting cities down is not going to make coronavirus go away — it is a last ditch effort of a failed nation that let its health infrastructure rot.
Everywhere else we are taking sensible personal precautions, and retraining people for the six month fight ahead: social distancing, self-isolation, far more attention to hygiene. We can do that because our health care systems and pandemic response capabilities weren’t vandalised by vested interests.
corroborated here
https://www.reuters.com/article/us-health-coronavirus-tesla-...
I've been keeping a tally of companies and leaders who force people to come to the office or use this as a marketing opportunity (vs data4good), and Tesla is now on the shortlist for evil.
Has Tesla received taxpayer subsidies for anything in the last year or two other than customer incentives to buy zero emission vehicles?
Compare this to GM (TARP bailout and BK proceedings) and Ford, who we lost $10 billion on as taxpayers.
Tesla has a lot to complain about, but they’re not the failure the rest of the US auto industry is. Ford may not make it through this.
https://www.treasury.gov/initiatives/financial-stability/TAR...
https://www.forbes.com/sites/joannmuller/2016/09/21/trump-sh...
> Ford likes to say it “didn’t take the money” because unlike General Motors and Chrysler, it didn’t require a taxpayer bailout to survive the 2008-2009 credit crisis. But don’t forget: Ford tapped into a different pool of government money set aside for the auto industry during those desperate times. (And those low-cost funds were critical to Ford’s survival because no other funding sources were available.)
> Hoping to create “thousands of green jobs” in the U.S. and reduce the nation’s dependence on foreign oil, the DOE under the Bush Administration established the $25 billion loan program in 2007 to encourage development of advanced technology vehicles that would burn less fuel and, importantly, be manufactured in the U.S. Congress funded the program in 2009, after President Obama took office.
> Ford applied for and received $5.9 billion in June 2009 (the same month GM filed for bankruptcy) to help pay for investments in more fuel-efficient engines, hybrids and electric cars and also to convert two truck plants to production of cars.
Ford is cancelling all their cars except trucks and the Mustang. They took a bailout that wasn’t a bailout in name only.
Whether or not they met the conditions of the loan is a different story.
And while technically true that the mustang is the remaining US car, it obfuscates the fact that the name is being more of a brand moniker than a model, and will include plans for an electric version of the “mustang”
At the same you I'll invest in you in the same way the government did with Tesla. i.e I give you money, and you pay it back 10 years early with interest.
I wholeheartedly accept this deal. Do you? Why not?
With that being said, the link by the other poster says Ford will repay by 2022
I'm happy we have real civic-level project funding for people who get results, and private citizens reaping massive profits from them. In fact, I think the real genius of Musk & Thiel is to be self-enriching versions of FDR, and the DC prime etc. mess has forced their need. But that doesn't excuse evil - there are real lives involved,.
Consumer car companies, casinos, and other special interests don't make sense to me beyond the obvious answer of "knowing corruption" and "institutionalized malignant ignorance."
[0] https://www.revealnews.org/article/inside-teslas-factory-a-m...
[1] https://www.caranddriver.com/news/a31093282/ntsb-autopilot-t...
If things work out for Tesla and they don't have a Covid-19 outbreak among their employees, a small number of people stand to benefit greatly (Elon Musk especially).
If things go south for Tesla, not only do Tesla employees have to deal with the fallout, but also their families and their communities.
Not sure if that will work.
So much of what he does can be seen as driven by pure self interest despite his altruistic, saver of humanity persona.
He is personally set to receive tens of billions in compensation if Tesla hits its targets. Which no matter who the person is has a significant influencing effect.
Now I'm just waiting for his big announcement that he's putting together a crack team to develop a COVID-19 cure/vaccine, at which he'll throw a few million dollars and achieve nothing other than to stoke his ego and reputation. I hope I'm wrong.
Cheap money will certainly help though.
If he made a decision that appears to be wrong or stupid regarding Tesla cars or SpaceX, I'd be more cautious to call him out. But my comment wasn't even close to be about that. I hope you can understand what I'm saying here.
I went to the doctor and the pharmacist and was surprised at the amount of people milling about. Definitely no 6 feet of social distancing either.
While the public works construction crews are exempt from this, maybe they can fix Van Ness while everyone's cooped up?
Wow, really? Let's take a look at your examples.
> Residential construction workers are still putting up drywall, laying tiles, etc.
Residential construction is exempted.
> High end coffee shops are still selling $6 lattes.
coffee shops are exempted for take-out and delivery.
> the doctor and the pharmacist and was surprised at the amount of people milling about
Doctor's offices and pharmacists are exempted.
That's some very essential services there. My point is that the number of exclusions make this policy a joke. It's not a serious effort. It's half-arsed at best. It's not going to work.
> Doctor's offices and pharmacists are exempted.
I know, that's why I went.
People need food and retail workers need employment.
Bullshit. You are changing your stance once it was called out as wrong.
These were your examples for "I will say that lots of places are ignoring the shelter in place request". Doing things that are exempted from the request isn't ignoring it.
I'm not alone in my disgust about people's activity during the lockdown: https://www.washingtonpost.com/nation/2020/03/18/coronavirus...
Also, lol at new construction in San Francisco! ;)
> For purposes of this Order, individuals may leave their residence to provide any services or perform any work necessary to the operations and maintenance of “Essential Infrastructure,” including,but not limited to, public works construction, construction of housing (in particular affordable housing or housing for individuals experiencing homelessness), airport operations, water, sewer, gas, electrical, oil refining, roads and highways, public transportation, solid waste collection and removal, internet, and telecommunications systems(including the provision of essential global, national, and local infrastructure for computing services, business infrastructure, communications, and web-based services), provided that they carry out those services or that work in compliance with Social Distancing Requirements as defined this Section, to the extent possible.
Source: http://acphd.org/media/559658/health-officer-order-shelter-i...
[1]http://acphd.org/media/559658/health-officer-order-shelter-i...
Apparently under county order they cannot make any new vehicles, only replacement parts.