News
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
Do you have a tip you’d like to share? Email us at tips@teslarati.com or DM us @Teslarati.
News
Tesla puts Giga Berlin in Plaid Mode with new massive investment
The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.
Tesla is pushing forward with significant upgrades at its Gigafactory Berlin-Brandenburg in Grünheide, Germany, signaling renewed confidence in its European operations despite past market challenges.
The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.
In April, plant manager André Thierig announced a 20 percent increase in Model Y production starting in July, following a record Q1 output of more than 61,000 vehicles. To support the ramp-up, Tesla plans to hire approximately 1,000 new employees beginning in May and convert 500 temporary workers to permanent positions.
The move is expected to lift weekly production significantly, addressing rebounding demand in Europe after a challenging 2025.
Today, we announced a $ 250m investment for our Giga Berlin Cell factory. This will enable 18GWh of annual 4680 cell production and create more than 1500 new jobs. Good news during challenging times for the German industry. pic.twitter.com/ou4SWMfWh9
— André Thierig (@AndrThie) May 12, 2026
The expansion builds on earlier progress. In 2025, Tesla secured partial approvals to add roughly 2 million square feet of factory space, raising potential annual vehicle capacity from around 500,000 toward 800,000 units, with longer-term ambitions approaching one million vehicles per year. Logistical improvements, new infrastructure, and battery-related facilities are already underway on company-owned land.
Battery production is the latest major focus. On May 12, Thierig revealed an additional $250 million investment in the on-site cell factory. This more than doubles the planned 4680 battery cell capacity to 18 gigawatt-hours annually—up from the 8 GWh target set in December 2025—while creating over 1,500 new battery-related jobs.
Total cell investments at the site now exceed previous figures, bringing the factory closer to full vertical integration: cells, packs, and vehicles produced under one roof. Tesla describes this as unique in Europe and a step toward stronger supply chain resilience.
The plans come amid regulatory and community hurdles. Earlier expansion proposals faced protests over environmental concerns and water usage, leading to phased approvals beginning in 2024. Tesla has navigated these by emphasizing sustainable practices and economic benefits, including thousands of local jobs in Brandenburg.
With nearly 12,000 employees already on site and production steadily climbing, Gigafactory Berlin is poised for growth. The combined vehicle and battery expansions position the plant as a key hub for Tesla’s European ambitions, potentially making it one of the continent’s largest manufacturing complexes if local support continues.
As EV demand recovers, these investments underscore Tesla’s commitment to scaling efficiently in Germany while addressing regional supply chain needs.
News
Honda gives up on all-EV future: ‘Not realistic’
Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.
Honda has given up on a previous plan to completely changeover to EVs by 2040, a new report states. The company’s CEO, Toshihiro Mibe, said that the idea is “not realistic.”
Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.
Mibe said (via Motor1):
“Because of the uncertainty in the business environment and also the customer demand, is changing beyond our expectation and, therefore, we have judged that it’ll be difficult to achieve. That ratio [100-percent electric in 2040] is not realistic as of now. We have withdrawn this target.”
Instead of going all-electric, Honda still wants to oblige by its hopes to be net carbon neutral by 2050. It will do this by focusing on those popular hybrid powertrains, planning to launch 15 of them by March 2030.
Honda will invest 4.4 trillion yen, or almost $28 billion, to build hybrid powertrains built around four and six-cylinder gas engines.
There are so many companies abandoning their all-electric ambitions or even slowing their roll on building them so quickly. Ford, General Motors, Mercedes, and Nissan have all retreated from aggressive EV targets by either cancelling, delaying, or pausing the development of electric models.
Hyundai’s 2030 targets rely on mixed offerings of electric, hybrid & hydrogen vehicles
Early-decade pledges from multiple brands proved overly ambitious as infrastructure lags, battery costs remain high in some markets, and many buyers prefer hybrids for their convenience and range. Toyota has long championed hybrids, while others have quietly extended internal-combustion timelines.
For Honda—historically known for reliable gasoline engines—this shift leverages its core strengths while buying time to refine electric technology. Whether the hybrid-heavy strategy will protect market share in an increasingly competitive landscape remains to be seen, but one thing is clear: the gas engine is far from dead at Honda, unfortunately.
Elon Musk
Delta Airlines rejects Starlink, and the reason will probably shock you
In a pointed exchange on X, Elon Musk defended SpaceX’s uncompromising approach to Starlink’s in-flight internet service, explaining why Delta Air Lines walked away from a deal.
SpaceX frontman Elon Musk explained on Wednesday why commercial airline Delta got cold feet over offering Starlink for stable internet on its flights — and the reason will probably shock you.
In a pointed exchange on X, Elon Musk defended SpaceX’s uncompromising approach to Starlink’s in-flight internet service, explaining why Delta Air Lines walked away from a deal.
Delta rejected Starlink because it insisted on routing all connectivity through its branded “Delta Sync” portal rather than allowing a simple Starlink experience.
Instead, the airline partnered with Amazon’s Project Kuiper—rebranded as Amazon Leo—for high-speed Wi-Fi on up to 500 aircraft, with rollout targeted for 2028. At the time of the announcement, Kuiper had roughly 300 satellites in orbit, while Starlink operated more than 10,400.
The use of the “Delta Sync” portal would not work for SpaceX, as Musk went on to say that:
“SpaceX requires that there be no annoying ‘portal’ to use Starlink. Starlink WiFi must just work effortlessly every time, as though you were at home. Delta wanted to make it painful, difficult and expensive for their customers. Hard to see how that is a winning strategy.”
Musk doubled down in a follow-up post:
“Yes, SpaceX deliberately accepted lower revenue deals with airlines in exchange for making Starlink super easy to use and available to all passengers.”
Not exactly. SpaceX requires that there be no annoying “portal” to use Starlink.
Starlink WiFi must just work effortlessly every time, as though you were at home.
Delta wanted to make it painful, difficult and expensive for their customers. Hard to see how that is a winning…
— Elon Musk (@elonmusk) May 13, 2026
SpaceX has structured its airline agreements to prioritize zero-friction access—no captive portals, no SkyMiles logins, no paywalls or ads blocking basic connectivity.
While this means forgoing higher-margin deals that would let carriers monetize the service more aggressively, it ensures Starlink feels like home broadband at 35,000 feet. Passengers on partner airlines such as United, Qatar Airways, and Air France have already praised the service for enabling seamless video calls, streaming, and work mid-flight without interruptions.
Delta’s choice reflects a different philosophy. By keeping Wi-Fi behind its Delta Sync ecosystem, the airline aims to drive loyalty program engagement and control the digital passenger journey. Yet, critics argue this short-term control comes at the expense of immediate competitiveness.
Airlines already installing Starlink are pulling ahead in customer satisfaction surveys, while Delta passengers face years of reliance on slower, legacy systems until Leo launches.
SpaceX’s decision to trade revenue for simplicity will pay off in the longer term, as Starlink is already positioning itself as the default high-speed option for carriers that value passenger satisfaction over incremental fees.
Musk’s focus on creating not only a great service but also a reasonable user experience highlights SpaceX’s prowess with Starlink as it continues to expand across new partners and regions.
Tesla puts Giga Berlin in Plaid Mode with new massive investment
Honda gives up on all-EV future: ‘Not realistic’
