At the height of covid cases, hospitals were nearing their capacity, some did and had to declare major incidents rerouting patients to other nearby hospitals which were also nearing their capacity...
Even if the death toll from covid would have been ZERO for every infected person, assuming they were able to get a hospital bed, without lockdowns reducing the transmission, we would have ran out of hospital beds. Ambulances would have been sat outside the hospitals unable to unload their patient's. At this stage all elective/emergency surgery would have stopped. The 999 operators would have been swamped which wouldn't matter anyway because there is nothing they can do as all the ambulances are stuck. Imagine calling for an ambulance after a car crash, or for a family member after a household accident, not only do you not get one but the hospital wont accept a patient if you drop them off.
Elon is no doubt highly intelligent, he would have known this.. He also would have known that if he kicked up enough of a fuss, and sent his own employees in, this would have little effect on the overall hospital bed status and he could avoid fines by threatening to take his business elsewhere or just pay them and still make a profit by having the factory open.