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Tesla addresses coronavirus “shutdown” of Fremont factory in email to employees
Tesla will continue to support essential business functions at its Fremont factory in the Bay Area, as the County-mandated Coronavirus lockdown continues to shut down “non-essential” businesses across the region.
In an email sent to employees on Wednesday, the company’s North American head of Human Resources Valerie Capers Workman notes that Tesla does has yet to obtain a “final word” from the City, County, State and, Federal Government on the status of their operations and will continue to operate with essential employees. The company is asking employees that are not feeling well, and those reluctant to come to work, to use any accrued paid time off and stay at home. For those short on PTO, the company is allowing employees to borrow up to 80 hours.
“If you are not feeling well, please stay at home and use PTO. If your PTO balance is low, you can borrow up to 80 hours (2 weeks), after you exhaust your PTO balance. Please inform your manager and follow the normal procedures for sick time.If you cannot or are reluctant to come to work, you can also use your PTO,” reads the email.
In addition, Tesla clarifies its stance on maintaining operations at its Fremont, California factory, noting that employees that are in an essential role within production, deliveries, and other critical functions, should continue to report to work.
“There are no changes in your normal assignment and you should continue to report to work if you are in an essential function: production, service, deliveries, testing and supporting groups as discussed with your manager.”
Today’s email comes on the heels of Monday’s announcement of a “shelter in place” lockdown for the San Francisco Bay Area to fight the spread of the coronavirus. The mandate, which required seven counties including Alameda County where Tesla operates its North American car factory, called for residents and workers that do not support a critical role in food, medical, and non-essential services to stay home.
Tesla CEO Elon Musk notified employees in an email sent Tuesday that he intended to work but it was OK to stay at home. “I’d like to be super clear that if you feel the slightest bit ill or even uncomfortable, please do not feel obligated to come to work,” said Musk in his email to employees. “I will personally be at work, but that’s just me. Totally OK if you want to stay home for any reason.”
Still, the Silicon Valley-based electric car company came under pressure later that evening after the Alameda County Sheriff called out Tesla for being a non-essential business. The tweet posted by the county Sheriff’s department seemingly addressed Tesla’s relationship to the new ordinance, while indicating that the company can maintain basic operations. “Tesla can maintain minimum basic operations per the Alameda County Health Order.”
As of Tuesday, Tesla continues to maintain basic operations at its Fremont factory. While the company reels in the widespread consumer and economic impact of the global COVID-19 on its outlook, the Elon Musk-led electric carmaker is expected to continue operations under well-defined guidelines. Tesla had begun first deliveries of its newest Model Y crossover days before the announced lockdown.
“We still do not have a final word from the City, County, State and, Federal Government on the status of our operations. We have had conflicting guidance from different levels of government,” notes Workman in her email to staff.
The full email, obtained by CNBC, has been provided below.
Hi Team!
We still do not have a final word from the City, County, State and, Federal Government on the status of our operations. We have had conflicting guidance from different levels of government. Until then, we are operating with Essential Employees only while all others are working from home, and working to incorporate all CDC guidelines into our operations. There are no changes in your normal assignment and you should continue to report to work if you are in an essential function: production, service, deliveries, testing and supporting groups as discussed with your manager. If you are not assigned to support an essential function, your manager might suggest a temporary relocation to support essential functions, or you may need to be on call. If you are not feeling well, please stay at home and use PTO. If your PTO balance is low, you can borrow up to 80 hours (2 weeks), after you exhaust your PTO balance. Please inform your manager and follow the normal procedures for sick time. If you cannot or are reluctant to come to work, you can also use your PTO. Please inform your manager. You can also take unpaid time off, after your exhaust your PTO. You will not be penalized for your decision. There will be no disciplinary action for attendance based on health or impossibility to come to work. We will communicate with everyone again tonight and we appreciate all you are doing to keep safe social distance.
Thank you!
Valerie
Valerie Capers Workman | North America HR + AU/NZ/JP/KRRegistered In House Counsel
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Elon Musk
Delaware Supreme Court reinstates Elon Musk’s 2018 Tesla CEO pay package
The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla.
The Delaware Supreme Court has overturned a lower court ruling, reinstating Elon Musk’s 2018 compensation package originally valued at $56 billion but now worth approximately $139 billion due to Tesla’s soaring stock price.
The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla. Musk quickly celebrated the outcome on X, stating that he felt “vindicated.” He also shared his gratitude to TSLA shareholders.
Delaware Supreme Court makes a decision
In a 49-page ruling Friday, the Delaware Supreme Court reversed Chancellor Kathaleen McCormick’s 2024 decision that voided the 2018 package over alleged board conflicts and inadequate shareholder disclosures. The high court acknowledged varying views on liability but agreed rescission was excessive, stating it “leaves Musk uncompensated for his time and efforts over a period of six years.”
The 2018 plan granted Musk options on about 304 million shares upon hitting aggressive milestones, all of which were achieved ahead of time. Shareholders overwhelmingly approved it initially in 2018 and ratified it once again in 2024 after the Delaware lower court struck it down. The case against Musk’s 2018 pay package was filed by plaintiff Richard Tornetta, who held just nine shares when the compensation plan was approved.
A hard-fought victory
As noted in a Reuters report, Tesla’s win avoids a potential $26 billion earnings hit from replacing the award at current prices. Tesla, now Texas-incorporated, had hedged with interim plans, including a November 2025 shareholder-approved package potentially worth $878 billion tied to Robotaxi and Optimus goals and other extremely aggressive operational milestones.
The saga surrounding Elon Musk’s 2018 pay package ultimately damaged Delaware’s corporate appeal, prompting a number of high-profile firms, such as Dropbox, Roblox, Trade Desk, and Coinbase, to follow Tesla’s exodus out of the state. What added more fuel to the issue was the fact that Tornetta’s legal team, following the lower court’s 2024 decision, demanded a fee request of more than $5.1 billion worth of TSLA stock, which was equal to an hourly rate of over $200,000.
Delaware Supreme Court Elon Musk 2018 Pay Package by Simon Alvarez
News
Tesla Cybercab tests are going on overdrive with production-ready units
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the vehicle being reported across social media this week.
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the autonomous two-seater being reported across social media this week. Based on videos of the vehicle that have been shared online, it appears that Cybercab tests are underway across multiple states.
Recent Cybercab sightings
Reports of Cybercab tests have ramped this week, with a vehicle that looked like a production-ready prototype being spotted at Apple’s Visitor Center in California. The vehicle in this sighting was interesting as it was equipped with a steering wheel. The vehicle also featured some changes to the design of its brake lights.
The Cybercab was also filmed testing at the Fremont factory’s test track, which also seemed to involve a vehicle that looked production-ready. This also seemed to be the case for a Cybercab that was spotted in Austin, Texas, which happened to be undergoing real-world tests. Overall, these sightings suggest that Cybercab testing is fully underway, and the vehicle is really moving towards production.
Production design all but finalized?
Recently, a near-production-ready Cybercab was showcased at Tesla’s Santana Row showroom in San Jose. The vehicle was equipped with frameless windows, dual windshield wipers, powered butterfly door struts, an extended front splitter, an updated lightbar, new wheel covers, and a license plate bracket. Interior updates include redesigned dash/door panels, refined seats with center cupholders, updated carpet, and what appeared to be improved legroom.
There seems to be a pretty good chance that the Cybercab’s design has been all but finalized, at least considering Elon Musk’s comments at the 2025 Annual Shareholder Meeting. During the event, Musk confirmed that the vehicle will enter production around April 2026, and its production targets will be quite ambitious.
News
Tesla gets a win in Sweden as union withdraws potentially “illegal” blockade
As per recent reports, the Vision union’s planned anti-Tesla action might have been illegal.
Swedish union Vision has withdrawn its sympathy blockade against Tesla’s planned service center and showroom in Kalmar. As per recent reports, the Vision union’s planned anti-Tesla action might have been illegal.
Vision’s decision to pull the blockade
Vision announced the blockade in early December, stating that it was targeting the administrative handling of Tesla’s facility permits in Kalmar municipality. The sympathy measure was expected to start Monday, but was formally withdrawn via documents sent to the Mediation Institute and Kalmar Municipality last week.
As noted in a Daggers Arbete report, plans for the strike were ultimately pulled after employer group SKR highlighted potential illegality under the Public Employment Act. Vision stressed its continued backing for the Swedish labor model, though Deputy negotiation manager Oskar Pettersson explained that the Vision union and IF Metall made the decision to cancel the planned strike together.
“We will not continue to challenge the regulations,” Petterson said. “The objection was of a technical nature. We made the assessment together with IF Metall that we were not in a position to challenge the legal assessment of whether we could take this particular action against Tesla. Therefore, we chose to revoke the notice itself.”
The SKR’s warning
Petterson also stated that SKR’s technical objection to the Vision union’s planned anti-Tesla strike framed the protest as an unauthorized act. “It was a legal assessment of the situation. Both for us and for IF Metall, it is important to be clear that we stand for the Swedish model. But we should not continue to challenge the regulations and risk getting judgments that lead nowhere in the application of the regulations,” he said.
Vision ultimately canceled its planned blockade against Tesla on December 9. With Vision’s withdrawal, few obstacles remain for Tesla’s long-planned Kalmar site. A foreign electrical firm completed work this fall, and Tesla’s Careers page currently lists a full-time service manager position based there, signaling an imminent opening.