calculated risk

May 12, 2020 /// issue no. 129

Elon Musk is like the Charlie Sheen of the automotive and technology industry. He says things you think are completely insane. But you know he’s good for it. And while Musk has threatened to move Tesla to Texas and Nevada he has opened up the Fremont, CA Tesla factory. Musk has since deleted the tweet “announcing” the move.

You can catch a glimpse of one of the houses I grew up in on the Tesla Fremont factory page. “Back in my day”, the Tesla plant was known as NUMMI and built many of the Toyota Corolla’s you can still see driving around your town. It was somewhat bizarre to have an auto manufacturing plant in our California town, but we all knew someone at least in the second-degree that worked at the plant. Fremont’s mayor has urged Alameda County officials to work with businesses to dampen the impact to the local economy.

For Tesla it is much more than just helping 10,000 workers get paid. Shuttering the only U.S. factory that completes all of their S, 3, X, and Y models poses a significant risk to the business as an ongoing entity. According to Tesla, Alameda County has refused to respond to their calls. The automaker is now forcing a conversation as it has filed a lawsuit against the county. While not exactly a Tom Clancy novel, the introduction to the suit is actually a pretty good read.

I haven’t been following $TSLA’s reaction to the drama, but I certainly look forward to seeing the Securities and Exchange Commission’s next move towards Musk. Perhaps they have figured out that you just can’t contain him. Or maybe they are just assuming that Elon will already be in jail. Musk has asked that if anyone is arrested for violating health department orders, that he be the only one. Via twitter, of course.

Coffee time,

daily automotive addiction.