Tesla announces factory shutdown starting on March 24

Tesla announced today that it will officially shut down its Fremont factory and Gigafactory New York starting on March 24 after pressure from local authorities.

As we have been reporting over the last few days, there’s been a back and forth between Tesla and different levels of government about whether or not the automaker has to comply with the shelter-in-place order in the Bay Area, which would force the company to stop producing cars at its Fremont factory.

Based on an email sent to employees earlier today, Tesla appears to still plan to continue its operations at the factory, despite recent comments from the Alameda County Sheriff’s Office saying that they are not allowed to produce cars.

However, the automaker has now officially announced plans to shut down Fremont factory and Gigafactory New York at the end of the day on March 23.

Gigafactory Nevada is going to continue to operate, as well as Tesla’s stores, service centers, and Supercharger stations.

Here’s Tesla’s full press release:

In the past few days, we have met with local, state, and federal officials. We have followed and are continuing to follow all legal directions and safety guidelines with respect the operations of our facilities, and have honored the federal government’s direction to continue operating. Despite taking all known health precautions, continued operations in certain locations has caused challenges for our employees, their families, and our suppliers.

As such, we have decided to temporarily suspend production at our factory in Fremont, from end of day March 23, which will allow an orderly shutdown. Basic operations will continue in order to support our vehicle and energy service operations and charging infrastructure, as directed by the local, state, and federal authorities. Our factory in New York will temporarily suspend production as well, except for those parts and supplies necessary for service, infrastructure, and critical supply chains. Operations of our others facilities will continue, including Nevada and our service and Supercharging network.

In many locations, we are in the process of implementing ‘touchless deliveries’ so customers can continue to take delivery of their vehicle in a seamless and safe way. Due to the unique over-the-air connectivity of our vehicles, customers are able to unlock their new cars at a delivery parking lot via the Tesla App, sign any remaining relevant paperwork that has been placed in their car, and return that paperwork to an onsite drop-off location prior to leaving. This method provides additional convenience and comfort.

Our cash position at the end of Q4 2019 was $6.3B before our recent $2.3B capital raise. We believe this level of liquidity is sufficient to successfully navigate an extended period of uncertainty. At the end of Q4 2019, we had available credit lines worth approximately $3B including working capital lines for all regions as well as financing for the expansion of our Shanghai factory.