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tesla fremont factory in northern california where the model 3 and model y are manufactured tesla fremont factory in northern california where the model 3 and model y are manufactured

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Tesla could drop plans for Fremont factory’s restart amid extended Stay-at-Home orders

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Tesla could drop its plans to call some workers back to the Fremont factory after counties in the San Francisco Bay Area expressed plans to extend Stay-at-Home orders through the entire month of May and possibly into June.

The Fremont facility is located in Alameda County, California. Alameda’s health officer and six other counties have stated they will be announcing revised Stay-at-Home orders for citizens. The current lockdown was initially due to end on May 3, but it seems the counties’ leading health authorities have pulled back in their intent to allow people to come back to work next week.

Tesla closed both its Fremont, California, and Buffalo, New York facilities on March 23, 2020 due to the ongoing pandemic. Tesla had announced earlier in April that both production plants would be reopening on May 4, along with its Giga Nevada facility that produces batteries and powertrains for the Model 3 sedan.

Tesla planned to implement a series of safety measures in each of the plants to keep employees safe from the possibility of contracting the virus. However, it appears that Fremont may end up staying closed, which means vehicle production for the electric carmaker could be delayed for most of 2020’s second quarter.

While the company has stopped producing all of its available electric vehicles in the United States, Tesla has continued to deliver cars to consumers. Tesla has initiated a series of safety precautions to help stop the spread of the disease through human contact while still allowing owners to obtain their vehicles. One of the most known steps is a “contactless delivery” service that enables drivers to pick up keycards through automated locker systems.

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The company planned to begin bringing some workers back as early as this week. Members of Tesla’s paint and stamping departments were reportedly told to come to work on April 29, according to a Bloomberg report. The South Paint shop located within the Fremont facility was to be revamped shortly, according to documents Teslarati recovered earlier this month.

Roughly 20,000 people in the Bay Area work for Tesla, half of them at the Fremont facility. The rest are deployed in showrooms, office spaces, and the company’s headquarters in Palo Alto. Around 2,500 of these employees are still working to maintain the company’s primary operations.

The Bay Area went under Stay-at-Home orders on March 16, which was one of the earliest dates announced in the United States. These orders in the San Francisco area have helped limit the spread of COVID-19 throughout the U.S.

Tesla could announce its plans to keep the facilities closed during its Q1 2020 earnings call on Wednesday, April 29.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Investor's Corner

Tesla hints at ‘Model 2’ & next-gen EV designs

Tesla’s Q1 2025 update confirms new models this year, with production tied to existing factory lines. Could it be time for the Model 2 debut?

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(Credit: Tesla)

During its Q1 2025 earnings call, Tesla executives hinted at the much-rumored “Model 2” and other next-gen EV designs.

Tesla slightly addressed whether or not it will be pushing forward with the debut of new models later this year in its latest earnings call. The company’s product development executive, Lars Moravy, shared some details about Tesla’s design process and the upcoming affordable models.

“We’re still planning to release models this year. As with all launches, we’re working through, like, the last minute issues that pop up. We’re knocking them down one by one. At this point, I would say that the ramp might be a little slower than we had hoped initially…But there’s nothing that’s blocking us from starting production within the next, within the timeline laid out in the opening remarks.

“And I will say it’s important to emphasize that, as we’ve said all along, the full utilization of our factories is the primary goal for these new products. And so the flexibility of what we can do within the form factor and, you know, the design of it is really limited to what we can do on our existing lines rather than building new ones. But we’ve been targeting the low cost of ownership. Monthly payment is the biggest differentiator for our vehicles, and that’s why we’re focused on bringing these new models with the, you know, the lowest price, to the market, within the constraints I just highlighted.”

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In January, Tesla’s Chief Financial Officer Vaibhav Taneja teased several new product introductions for this year. There is at least one product that most Tesla supporters and investors are hoping to see: the company’s affordable vehicles, which have been dubbed by the EV community as the “Model 2” or “Model Q.”

Before Tesla’s Robotaxi event last year, many speculated that the company would also unveil its affordable next-gen vehicle. Gene Munster from Deepwater had expected Tesla to release a stripped-down version of the Model 3 as its affordable vehicle during the Robotaxi event. In the end, Tesla unveiled its Robotaxi vehicle and its Robovan design.

It’s been a while since the Robotaxi event, and Tesla has kept mum about its affordable vehicle. Considering its Q1 2025 performance, TSLA investors look forward to catalysts that could boost the stock.

The “Model 2” has been labeled a potential catalyst for Tesla. As such, TSLA investors and supporters have been itching for news about the new affordable vehicle. The main questions surrounding the “Model 2” revolve around its design and price. Based on Moravy’s statement, the “Model 2’s” design will heavily depend on Tesla’s current assembly lines and supply chain structures.

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Tesla owner-investor stands ground after receiving Nazi-themed mail, welcomes new Model Y

The Tesla investor even made it a point to purchase the brightest shade available for her new Model Y.

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Credit: Tesla

A TSLA investor has decided to stand her ground after receiving a threatening, Nazi-themed card at her home.

The Tesla investor even welcomed a new Ultra Red Tesla Model Y to show her support for the company.

Responding with a New Tesla

As per 58-year-old Alexandra Merz, an investment analyst and immigration consultant who immigrated from Germany to the United States, she received mail from a Boston address to her home on April 17. Upon opening the letter, she was greeted by an image of the Tesla logo incorporated with a Nazi salute.

Inside the card was a handwritten message which read, “History has its eyes on you.” Merz promptly reported the message to the FBI. In a comment to the New York Post, she stated that she is now even more motivated to support Elon Musk and his ventures.

“This atrocious behavior motivates me even more to stand up for Tesla, Elon, and DOGE,” Merz noted. “I bought our fifth Tesla last Saturday, a beautiful red Model Y, the best car out there. And it drives itself.”

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An Unfortunate Trend

In previous comments, Merz expressed her disdain for the ongoing attacks against Tesla and Musk. “Tesla is employing more than 140,000 employees worldwide, building the most American cars in the U.S., and building the European Model Ys in Berlin. I often wonder whether these protesters have thought through what they are doing,” she stated.

Elon Musk himself admitted to the disturbing trend during Tesla’s Q1 2025 earnings call, stating that “there’s been some blowback for the time that I’ve been spending in government with the Department of Government Efficiency or DOGE.” The CEO also stated that he would soon be stepping back from DOGE’s everyday operations and focusing more of his time on Tesla.

U.S. President Donald Trump also addressed the ongoing attacks on Teslas in a comment about Musk’s impeding step back from DOGE. As per Trump, people against Musk are taking out their frustrations on Tesla and its owners, which is unfair. He also described the people behind the attacks on Tesla as “sick.”

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Trump’s tariff exemptions for car parts bring mixed relief to automakers  

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donald trump smiling
(Credit: Gage Skidmore, CC BY-SA 3.0 <, via Wikimedia Commons)

U.S. President Donald Trump is expected to grant tariff exemptions for car parts, offering partial relief to automakers amid intense industry lobbying. Trump’s tariff exemptions aim to ease the burden of trade policies disrupting the auto sector.

The expected tariff exemptions will spare car parts from duties targeting Chinese imports and those on steel and aluminum, per two sources familiar with the matter. Sources called the strategy a “destacking” of tariffs. The 25% tariff on foreign-made cars, already in effect, and a 25% duty on imported car parts, set for May 3, will remain.

The Center for Automotive Research estimated that Trump’s 25% tariffs on automotive imports will inflate automakers’ costs by $108 billion in 2025, threatening profitability and supply chains. Automakers are clambering to comply with Trump’s auto tariffs while maintaining car prices, or at least keeping prices reasonable. However, the tariffs threaten to unravel the auto industry, affecting automakers, parts suppliers, and long-established supply chains.

Tesla has quickly adjusted to Trump’s auto tariffs, suspending plans to ship components from China for its Cybercab and Semi electric trucks to the U.S. Similarly, Ford halted shipments of select vehicles to China, facing retaliatory tariffs as high as 150%, which have severely impacted its export strategy.

The partial exemptions offer a reprieve for automakers reliant on global supply chains, but the persistent 25% tariffs on cars and auto parts continue to challenge cost structures. As U.S. automakers navigate these trade hurdles, the exemptions could stabilize some operations, though rising car prices and supply chain disruptions remain significant concerns for the industry’s outlook in 2025.

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