In a statement Tesla Inc said, starting from March 24 it will suspend production at its California vehicle factory so as to comply with local orders aimed at curbing the spread of coronavirus.
Tesla’s New York factory will also temporarily suspend production, while operations at its Nevada plant will continue.
“Despite taking all known health precautions, continued operations in certain locations has caused challenges for our employees, their families and our suppliers,” said Tesla in a statement.
Tesla’s statement also mentioned that it believes it has enough liquidity to successfully navigate the extended period of uncertainty. Before its recent $2.3 billion capital raising event, Tesla had reported $6.3 billion in cash at the end of its third quarter.
California’s Alameda County, where the vehicle factory is based, is one of six covered by an order from regional officials to “shelter in place,” which limits activity, travel and business functions to only the most essential, and advises people to stay home except for the most crucial reasons.
On Tuesday, the county sheriff’s office had said, Tesla was not considered an essential business and cannot continue to operate its factory normally.
On Thursday, Tesla had said it would continue basic operations at the Fremont factory in compliance with the order to support vehicle and energy services and charging infrastructure.