Tesla Fremont Factory’s May 4 reopening could be imminent now that an agency from the US Department of Homeland Security has set new guidelines for essential workers.
According to Homeland Security’s Cybersecurity and Infrastructure Security Agency, specific auto workers are now deemed essential. The new guidelines will affect the future operations of Tesla’s Fremont Factory during the second quarter, specifically its Model Y production, sales, and deliveries.
“Workers critical to the manufacturing, distribution, sales, rental, leasing, repair, and maintenance of vehicles and other transportation equipment” were listed as essential by the Cybersecurity and Infrastructure Security Agency (CISA) in the third version of its guidelines for pertinent employees released on April 17, 2020. “Clarified language to include vehicle manufacturers…” said a press release from CISA.
According to Bloomberg, CISA also deemed charging stations and supply chains for battery electric vehicles (BEVs) as critical to essential workers traveling to work. CISA’s new guidelines could help Tesla resume operations by May 4 as the EV automaker planned.
With CISA’s new guidelines, Tesla workers could continue to manufacture, distribute, sell, and lease the company’s vehicles like the Model Y. Deliveries for Tesla’s affordable SUV crossover started in March and may have significantly contributed to the company’s impressive Q1 2020 numbers. In total, TSLA (NASDAQ: TSLA) produced 102,672 vehicles in the first quarter and delivered 88,400--more than 80% of the cars it made. Tesla reported that it delivered 76,200 Model 3 and Model Y vehicles in Q1 2020.
The global pandemic has hampered and even halted operations in several industries, including the auto industry. Tesla's Fremont Factory shut down in March because of the pandemic. A few weeks ago, Tesla announced its hope to resume operations by May 4. CISA’s new guidelines could make that target possible.
Tesla has continued working with contactless Model Y deliveries, albeit at a slower pace for the safety of its employees and customers. However, once the Tesla Fremont Factory reopens, Model Y production, sales, and deliveries can resume at full capacity.
Once the California-based facility resumes operations, Q2 2020 predictions will undoubtedly change. It was unclear how a prolonged quarantine would affect Tesla, especially after Fremont Factory was temporarily closed. However, CISA’s new guidelines may be a ray of hope for Tesla’s Q2 2020 results.
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