- It is still unclear whether Tesla will face any penalties for resuming operations against the statutes.
- Trump and Mnuchin support Musk.
- Trump and his advisers are reportedly scrambling to restart the economy and mitigate the problem ahead of the elections.
Tesla has ignored a shutdown order by Fremont, California local authorities and reopened its facility in the county. A spokesperson for Alameda County said on Tuesday that health authorities were reviewing Tesla’s reopening safety guidelines. Tesla’s factory is situated in Alameda County.
It is among the six zones in the San Francisco Bay Area that are currently under a shelter-in-place order that is set to expire at the end of the month. The county has delayed reopening of nonessential businesses. County health authorities have stated that their bylaws trump the state’s.
They have confirmed Tesla’s reopening but declined to comment on the matter. It is still unclear whether Tesla will face any penalties for resuming operations against the statutes. The Alameda County Sheriff’s Office and the Fremont Police Department have yet to issue a statement regarding the latest development.
Trump Supports Musk
On Tuesday, US President Donald Trump expressed his support for Tesla’s reopening via Twitter, stating, “California should let Tesla & Elon Musk open the plant, NOW. It can be done Fast & Safely!” Musk has for some time now decried the regional order barring non-essential businesses from resuming business.
On Saturday, he threatened to shift his company’s factory out of California. He also sued Alameda County for the shutdown order. The suit sought an injunction to reopen his Tesla factory.
US Treasury Secretary Steven Mnuchin said on Monday that California should support Tesla’s resumption amid the Covid-19 crisis. “I agree with Elon Musk. He’s one of the biggest employers and manufacturers in California, and California should prioritize doing whatever they need to do to solve those health issues so that he can open quickly and safely,” Mnuchin told CNBC.
The United States suffered a record 20.5 million job losses during the month of April. This was the worst month in recorded job losses since the nation began tracking unemployment statistics in 1939. The unemployment rate spiked to 14.7 percent. The White House considers the job losses as catastrophically bad. Trump and his advisers are reportedly scrambling to restart the economy and mitigate the problem ahead of the elections.
The political implications at this moment are hard to ignore. Stephen Moore, a White House economic adviser, has revealed that he and associate economist, Art Laffer, recently presented a study to the White House that highlighted the severity of the economic damage if businesses continue to stay in shutdown mode.
“We were warning that we would be having a really bad economy for the rest of the year if we didn’t start getting states opened up as rapidly as possible,” he said. The economist warned that the economy is likely to suffer greatly in coming months. He also emphasized that Trump’s reelection will be heavily dependent on an economic recovery.
“I think he has to have something by the fall — showing signs that things are getting better. If we’re in a severe recession and people feel like we’re just stuck in an L-shaped recession, then he’s in real trouble.”