Just as it was rolling out its new and highly anticipated Model Y sedan, Tesla has received a proverbial knock on its factory door from the Alameda, Calif. sheriff's office telling it to halt production amid a state-wide shelter-in-place order due to the coronavirus outbreak.
Shares of Tesla (TSLA) - Get Report were downshifting again on Wednesday, partly carried by a fresh wave of selling on Wall Street, though augmented by the sheriff of the California county where its sole U.S. assembly plant is located saying Tesla's manufacturing plant should be closed.
On its official Twitter account, the Alameda County Sherriff said the electric carmaker is “… not an essential business as defined in the Alameda County Health Order.”
Tesla has more than 56,000 employees globally, including an estimated 10,000 who work at the factory in Fremont. Alameda County had 27 confirmed positive cases of Covid-19, the disease caused by the coronavirus, as of Tuesday.
Meantime, Bank of America on Wednesday raised its rating on Tesla stock to neutral from underperform with a $500 one-year price target based solely on valuation.
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