News
Tesla offers to make ventilators from its factory in response to coronavirus shortages (Update: NYC reaches out)
Tesla CEO Elon Musk has offered to make medical ventilators from its Fremont, California factory if a shortage should arise from the ongoing battle against the coronavirus.
The statement by Musk comes as a surprise to many, considering his recently publicized belief that the global anxiety around the COVID-19 virus has been blown out of proportion and that the danger of panic far exceeds the danger of the virus itself. Musk’s controversial statements have provoked a large response within the Twitter community, including that of Raja Abbas: a Tesla owner within the medical field.
Update: NYC Mayor Bill de Blasio reached out to Elon Musk in a cry for help after seeing his offer to make ventilators. “Our country is facing a drastic shortage and we need ventilators ASAP — we will need thousands in this city over the next few weeks. We’re getting them as fast as we can but we could use your help! We’re reaching out to you directly,” said the Mayor. Elon Musk responded.
“Please repurpose your factory to make ventilators which are needed ASAP. I am a Tesla owner and love the company. You have to stop being an idiot about this. This is a massive disaster. Ask the doctors in the field,” read a tweet by Abbas that was aimed at Musk.
Musk agreed to the request, noting that Tesla and SpaceX already have experience with manufacturing devices that support human respiration.
We will make ventilators if there is a shortage
— Elon Musk (@elonmusk) March 19, 2020
“Tesla makes cars with sophisticated hvac systems. SpaceX makes spacecraft with life support systems. Ventilators are not difficult, but cannot be produced instantly,” said Musk over Twitter, and further adding, “Which hospitals have these shortages you speak of right now?”
The need for additional ventilators has taken center stage in the ongoing fight against the spread of the contagious COVID-19 coronavirus that has strained hospitals and medical facilities with patients outnumbering available machines. The ventilator has become a critical first line of defense for patients infected by the virus, which attacks the lungs and prevents it from providing vital oxygen to organs within the body.
With more than two-thirds of coronavirus patients in critical condition needing respiratory support, hospitals and intensive care units in areas with a high concentration of infected patients have seen their limited supply of ventilators become fully exhausted. In attempts to prevent the spread of the novel coronavirus and reduce strain on intensive care units, governments from around the world have implemented social distancing measures by way of school closures, work from home policies, and complete lockdowns.
Exactly. My guess is that the panic will cause more harm than the virus, if that hasn’t happened already.
— Elon Musk (@elonmusk) March 19, 2020
The San Francisco Bay Area was the first in the nation to implement a strict “shelter in place” order that required people to stay home and non-essential businesses to shutdown. Tesla’s factory in Alameda County is among the businesses impacted by the policy that took effect on Tuesday, although it managed to remain in partial operation following a high-profile exchange with the County Sheriff’s Department.
The company cut its workforce by 75%, from 10,000 employees to 2,500 employees, as it remained partially open for essential business, excluding vehicle production. Musk’s offer to manufacture ventilators from the factory can be seen as a welcome invitation for medical facilities that continue to support the ongoing battle against the spread of the coronavirus.
News
Tesla Giga Berlin makes a statement of solidarity amid IG Metall conflict
The display comes as tensions between Tesla and IG Metall continue to escalate.
Tesla Giga Berlin is sending a strong message of solidarity amid its ongoing legal dispute with German union IG Metall.
In a post on social media platform X, Giga Berlin plant manager André Thierig shared an image of the facility’s lobby covered with a large banner that reads: “Progress. Innovation. Success.” He added that the slogan reflects what the facility has stood for since Day One.
“Our lobby at Giga Berlin covered in a huge banner these days. Progress. Innovation. Success – this is what we stand for since we started production in 2022 and how we will go into our future!” Thierig wrote in his post on X.
The display comes as tensions between Tesla and IG Metall continue to escalate.
The dispute began after Tesla accused a union representative of secretly recording a works council meeting at Giga Berlin. Tesla stated that it filed a criminal complaint after the alleged incident. Police later confirmed they had seized a computer belonging to an IG Metall member as part of their investigation.
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote on X at the time.
IG Metall denied the accusation and characterized Tesla’s move as an election tactic ahead of upcoming works council elections. The union subsequently filed a defamation complaint against Thierig. Authorities later confirmed that an investigation had been opened in connection with the matter.
Giga Berlin began production in 2022 and has since become one of Tesla’s key European manufacturing hubs, producing the Model Y, the company’s best-selling vehicle. The facility has expanded capacity over the past years despite environmental protests, labor disputes, and regulatory scrutiny.
Energy
Tesla Megapack Megafactory in Texas advances with major property sale
Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.
Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.
In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.
The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.
According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.
Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.
Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.
The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.
News
Tesla Sweden strikers see tax issues over IF Metall union error
To address the issue, IF Metall is encouraging Tesla strikers to return the refunded tax amounts to the union.
A tax correction is set to return two years of income tax payments to Tesla strikers in Sweden, after authorities determined that conflict compensation during a labor dispute should not have been taxed.
The issue is caused by a decision by IF Metall to treat strike compensation for Tesla workers as taxable income during the ongoing labor dispute with Tesla Sweden. That approach has now been reversed following guidance from the Swedish Tax Agency.
Strike compensation is typically tax-free under Sweden’s Income Tax Act, as noted in a report from Dagens Arbete (DA). However, two years ago, IF Metall’s board decided to classify payments to Tesla strikers as taxable.
“We did it to secure SGI, unemployment insurance and public pension. Those were the risks we saw when the strike had already dragged on,” Kent Bursjöö, financial manager at IF Metall, stated.
According to Bursjöö, the union wanted to ensure that members continued to register earned income with the tax agency, protecting benefits tied to income history. At the end of January, however, the Swedish Tax Agency informed the union that compensation during a labor dispute must be tax-free.
“Of course, we knew that it could be tax-free. But we clearly didn’t know that it couldn’t be taxable,” Bursjöö said.
Following discussions with auditors and tax authorities, IF Metall began correcting the payments. As a result, two years of paid income tax will now be credited back to the affected strikers’ tax accounts. The union will also recover previously paid employer contributions.
However, the correction creates secondary effects. Since the payments will now be treated as tax-free, pension contributions tied to those earnings will be withdrawn, potentially affecting state pension accrual and income-based benefits such as parental or sickness benefits.
To address this, IF Metall is encouraging members to return the refunded tax amounts to the union. In exchange, the union plans to pay 18.5% into occupational pensions on their behalf. “Otherwise, it will be a form of overcompensation when they get the tax paid back,” Bursjöö said.
That being said, the IF Metall officer acknowledged that the union’s legal ability to reclaim the funds from its improperly paid Tesla Sweden strikers is limited. “The legal possibilities are probably limited, from what we can see. But we assume that most people see the value of securing their pension,” Bursjöö said.