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Elon Musk defies orders, reopens California plant

Yahoo Finance’s Brian Sozzi and Heidi Chung break down the market action for Tesla after CEO Elon Musk resumed production, despite local authority orders.

Video Transcript

BRIAN SOZZI: Let's take a look at one of Yahoo Finance's trending tickers. That is Tesla. And no surprise here, Heidi. Tesla in focus as Elon Musk has-- he's got pretty aggressive out there on Twitter.

HEIDI CHUNG: Yeah, Brian. Tesla's stock is up more than 2% this morning and up some 90% this year. It really seems as if shareholders do not care that the CEO Elon Musk does not want to abide by the local health orders in California and Alameda County. Tesla officially opening its Fremont, California, factory yesterday and resumed operations.

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Musk taking to Twitter yesterday afternoon saying, quote, "Tesla is restarting production today against Alameda County rules. I will be on the line with everyone else. If anyone is arrested, I ask that it only be me."

Well, it looks like President Donald Trump is also in full support of Elon Musk and Tesla. The president tweeting moments ago, quote, "California should let Tesla and Elon Musk open the plant now. It can be done fast and safely."

Now, it's no secret that Musk has been against the stay-at-home orders that were put in Alameda County and also California. He also took to the earnings call about two weeks ago and described those orders as, quote, "not democratic" and, quote, "fascist." So it's very interesting to see shares up so much today in addition to just how far the stock has run this year as well, Brian.

BRIAN SOZZI: Yeah, Heidi, it appears that the stock is probably trading on that Tesla could start making cars again and might just wipe off the table any chance of raising more debt.

HEIDI CHUNG: Yeah, Brian, but we also do have to keep in mind that COVID-19 did hit Tesla as well. Tesla's sales in China took a big hit in March, falling 64%. And also we have to keep in mind that Elon Musk threatened to take Tesla headquarters and its factory outside of California completely. We are expecting Tesla to announce where it is planning to open its next US plant. That announcement should come within the next one to three months.

There is a lot of speculation out there that it could be in the Midwest or South. Texas looks like it could be a candidate here, Brian.

BRIAN SOZZI: All right, thanks, Heidi. Keep an eye on Elon's Twitter feed for us.

HEIDI CHUNG: Will do.