Category: The Boring Company

Tesla sues Alameda County to force California factory reopening

Tesla filed a lawsuit Saturday against Alameda County in an effort to invalidate orders that have prevented the automaker from reopening its factory in Fremont, California.

The lawsuit, which seeks injunctive and declaratory relief against Alameda County, was first reported by CNBC. The lawsuit was filed in U.S. District Court for California’s Northern District.

Earlier Saturday, Tesla CEO Elon Musk tweeted that he was filing a lawsuit against Alameda County and threatened to move its headquarters and future programs to Texas or Nevada immediately.

Tesla had planned to bring back about 30% of its factory workers Friday as part of its reopening plan, defying Alameda County’s stay-at-home order. Musk was basing the reopening on new guidance issued Thursday by California Gov. Gavin Newsom that allows manufacturers to resume operations. The guidance won praise from Musk, who later sent an internal email to employees about plans to reopen based on the governor’s revised order. However, the governor’s guidance included a warning that local governments could keep more restrictive rules in place. Alameda County, along with several other Bay Area counties and cities, last week extended the stay-at-home orders through the end of May. The orders were revised and did ease some of the restrictions. However, it did not lift the order for manufacturing.

The lawsuit argues that by preventing Tesla from opening, the Alameda County is going against its own guidance.

“Alameda County has expressly recognized and publicized that “businesses may . . . operate to manufacture” batteries and electric vehicles,” the complaint reads. “Inexplicably, however, the Third Order as well as County officials have simultaneously insisted that Tesla must remain shuttered, thereby further compounding the ambiguity, confusion and irrationality surrounding Alameda County’s position as to whether Tesla may resume manufacturing activities at its Fremont Factory and elsewhere in the County.”

The term “third order” is a reference to a revised stay-in-place order issued by Alameda County.

On Friday, the Alameda County Health Department said Tesla had not been given “the green light” to reopen and said if the company did, it would be out of compliance with the order.

Read the full complaint here.

Tesla v Alameda County Comp… by TechCrunch on Scribd

Tesla to reduce price of standard range Model 3 in China

Tesla said it will reduce the price of its standard range Model 3 vehicle in China to meet the government’s new eligibility requirements for subsidies.

This marks the second time this year that the automaker has reduced the price. Several months ago, the base version of China-made Model 3 was lowered by 9%.

Tesla has to cut the price of the vehicle to continue to qualify for government rebates on electric vehicles. The Chinese government instituted new regulations that require prices below 300,000 yuan for electric vehicles to qualify for subsidies.

The base price of the standard range Model 3 made in China is 323,800 yuan, or $45,754 before subsidies.

The price reduction will go into effect tomorrow in China, Tesla CEO Elon Musk said in a earnings call Wednesday. Musk, who didn’t provide a specific figure, said he is confident the vehicle will deliver a gross margin despite the reduction in price.

Tesla chief financial officer Zachary Kirkhorn added that the cost of vehicles produced at its Shanghai factory in the first quarter is already lower than the cost to produce the Model 3 in the United States. That margin should improve as the company improves its local supply chain in China. Tesla still ships some parts from the U.S. to build cars at its Shanghai factory.

Tesla Cybertruck reservations hit 146,000

Tesla has received 146,000 reservations to order the Tesla Cybertruck, pulling in some $14.6 million in deposits just two days after the company’s CEO Elon Musk unveiled the futuristic and angled vehicle.

Reservations require a $100 refundable deposit. How many of those deposits will convert to actual orders for the truck, which is currently priced between $39,900 and $69,900, is impossible to predict. And there will likely be plenty of speculation over the next two years. Production of the tri-motor variant of the cybertruck is expected to begin in late 2022, Tesla said.

Musk tweeted Saturday that 146,000 Cybertruck orders have been made so far. Of those, 41% picked the most expensive tri-motor option and 42% of future customers chose the dual motor version. The remaining 17% picked the cheapest single-motor model.

The Tesla Cybertruck, which Musk unveiled in dramatic fashion at the Tesla Design Center in Hawthorne, Calif., has been polarizing with skeptics heaping on the criticism and supporters pushing back in kind. Even Tesla fans at the Cybertruck event, which TechCrunch attended, seemed torn with some praising it and others wishing Musk had created something a bit more conventional.

The vehicle made of cold-rolled steel and features armored glass that cracked in one demonstration and an adaptive air suspension.

Tesla said it will offer three variants of the cybertruck. The cheapest version, a single motor and rear-wheel drive model, will cost $39,900, have a towing capacity of 7,500 pounds and more than 250 miles of range. The middle version will be a dual-motor all-wheel drive, have a towing capacity of more than 10,000 pounds and be able to travel more than 300 miles on a single charge. The dual motor AWD model is priced at $49,900.

The third version will have three electric motors and all-wheel drive, a towing capacity of 14,000 pounds and battery range of more than 500 miles. This version, known as “tri motor,” is priced at $69,900.