Tesla Inc. will halt production at its only assembly plant in the United States, disrupting supply of cars to customers as the quarter ends.
The decision announced in a statement Thursday followed several days of public pressure on Tesla from local police, city administrators and health officials that the automaker would continue to operate the factory despite an order from the refuge in the county. Tesla said the facility would cease production at the end of March 23.
All of the known health precautions and ongoing operations in some locations have created challenges for our employees, their families and our suppliers, Tesla said in the statement.
Last month, Tesla capitalized on its stock surge by raising $ 2.3 billion in a stock offering. That sum, combined with the $ 6.3 billion in cash on the balance sheet at the end of last year, “is enough to successfully navigate a prolonged period of uncertainty,” the company said.
Tesla’s solar plant in Buffalo, New York, will also suspend production. Hourly employees at both factories will receive their normal salary until Monday, and then the company will provide paid leave while operations are suspended, according to an internal email.
