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Tesla to Restart Bay Area Factory in Defiance of Local Order: Live Market Updates Tesla to Restart Bay Area Factory in Defiance of Local Order: Live Updates
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Tesla’s chief executive, Elon Musk, said the company would restart production at its California factory in defiance of a county order prohibiting it from doing so. Elon Musk, Tesla’s chief executive, said Monday that the electric-car company was resuming production at its assembly plant in Fremont, Calif., even though it had not yet been cleared to do so by local health authorities.
“Tesla is restarting production today against Alameda County rules,” Mr. Musk said on Twitter. “I will be on the line with everyone else. If anyone is arrested, I ask that it only be me.” “Tesla is restarting production today against Alameda County rules,” he announced on Twitter. “I will be on the line with everyone else. If anyone is arrested, I ask that it only be me.”
Tesla on Saturday sued the county, asking that it be allowed to resume production, after local officials said the company could not restart at the end of last week as it had planned. The county’s health officer has said he hopes to work out an agreement with Tesla to open the plant on May 18. The plant is Tesla’s main source of revenue and has been closed since early April. County officials have not yet authorized the resumption of indoor manufacturing over fears that the coronavirus could spread among large groups working in proximity.
County officials have said they hoped to work out an agreement with Tesla to open the plant on May 18, but Mr. Musk has been pushing to start production sooner. The plant is Tesla’s main source of revenue and has been closed since mid-March. In email that was sent on Monday and was reviewed by The New York Times, the company’s head of human resources in North America, Valerie Workman, told employees they would be contacted within 24 hours about when to report for work.
County officials have not yet authorized the resumption of indoor manufacturing over fears that the coronavirus could spread among large groups of workers working in proximity to each other. The state has authorized a resumption of manufacturing, Gov. Gavin Newsom said Monday that “we recognize localism” and that “if a county doesn’t want to go as far,” local orders would prevail.
But Mr. Musk’s brother, Kimbal, seemed unappeased, declaring Monday on Twitter, “The governor has enormous power. He chose to put it into the hands of the county and he can take back that decision. This is on @GavinNewsom entirely.”
AutoNation, the country’s biggest chain of new-car dealerships, said on Monday that auto sales had started to improve after a steep drop in the early days of the coronavirus outbreak.AutoNation, the country’s biggest chain of new-car dealerships, said on Monday that auto sales had started to improve after a steep drop in the early days of the coronavirus outbreak.
In the first 10 days of April, sales of new and used vehicles plunged by 50 percent. But in the final 10 days of last month, sales were off by just 20 percent, the company’s chief executive, Mike Jackson, said.In the first 10 days of April, sales of new and used vehicles plunged by 50 percent. But in the final 10 days of last month, sales were off by just 20 percent, the company’s chief executive, Mike Jackson, said.
The auto industry will see ups and downs the rest of this year, but consumers are still interested in buying new vehicles, Mr. Jackson said in an interview. “The automotive recovery is underway,” he said.The auto industry will see ups and downs the rest of this year, but consumers are still interested in buying new vehicles, Mr. Jackson said in an interview. “The automotive recovery is underway,” he said.
Many buyers coming to AutoNation are buying cars to reduce their use of public transit or shared transportation to avoid the chance of contracting the virus, he said. “There is now a greater desire to be in your own personal space,” Mr. Jackson said.Many buyers coming to AutoNation are buying cars to reduce their use of public transit or shared transportation to avoid the chance of contracting the virus, he said. “There is now a greater desire to be in your own personal space,” Mr. Jackson said.
News that auto sales are improving comes as several manufacturers are preparing to resume production of new cars and trucks. Toyota Motor planned to reopen its plants on Monday. General Motors, Ford Motor and Fiat Chrysler have said they will begin production May 18.News that auto sales are improving comes as several manufacturers are preparing to resume production of new cars and trucks. Toyota Motor planned to reopen its plants on Monday. General Motors, Ford Motor and Fiat Chrysler have said they will begin production May 18.
AutoNation on Monday reported that it lost $232 million in the first quarter, compared with a profit of $92 million in the same period a year earlier.AutoNation on Monday reported that it lost $232 million in the first quarter, compared with a profit of $92 million in the same period a year earlier.
Many consumers expect to lose their jobs and to see home prices stall — or even decline — over the coming year, according to a Federal Reserve survey. Given that peoples’ homes are often their largest investment, that could spell even more trouble for the economy. Many consumers expect to lose their jobs and to see home prices stall — or even decline — over the coming year, according to a Federal Reserve survey. Given that people’s homes are often their largest investment, that could spell even more trouble for the economy.
For the first time since the Federal Reserve Bank of New York started its survey of consumers in 2013, the median consumer did not expect home prices to increase over the next year. More than 44 percent of April respondents actually expected home prices to decline, and that pessimism was broad-based across demographic groups and regions.For the first time since the Federal Reserve Bank of New York started its survey of consumers in 2013, the median consumer did not expect home prices to increase over the next year. More than 44 percent of April respondents actually expected home prices to decline, and that pessimism was broad-based across demographic groups and regions.
As recently as February, consumers expected a 3 percent home price appreciation. The swift deterioration in their outlook underlines how much the coronavirus lockdown, which has left millions out of work and has made loans harder to come by, could threaten the housing industry.As recently as February, consumers expected a 3 percent home price appreciation. The swift deterioration in their outlook underlines how much the coronavirus lockdown, which has left millions out of work and has made loans harder to come by, could threaten the housing industry.
Mortgage credit availability has tumbled to its lowest level since late 2014, a Mortgage Bankers Association index showed last week, as lenders shy away from borrowers with low credit scores and those looking for large mortgages. That could blunt the economic benefit of the Fed’s recent rate cuts, as consumers struggle to benefit directly from lower borrowing costs.Mortgage credit availability has tumbled to its lowest level since late 2014, a Mortgage Bankers Association index showed last week, as lenders shy away from borrowers with low credit scores and those looking for large mortgages. That could blunt the economic benefit of the Fed’s recent rate cuts, as consumers struggle to benefit directly from lower borrowing costs.
Consumers were glum along other dimensions, too. They increasingly expected to lose their jobs, putting the chances over the coming year at 20.9 percent in April, a new series high.Consumers were glum along other dimensions, too. They increasingly expected to lose their jobs, putting the chances over the coming year at 20.9 percent in April, a new series high.
The United States is on the brink of the worst economic collapse since the Hoover administration. Corporate profits have crumpled. More than a million Americans have contracted the coronavirus, and hundreds are dying each day. The United States is on the brink of the worst economic collapse since the Hoover administration. Corporate profits have crumpled. More than a million Americans have contracted the coronavirus, and hundreds of people are dying each day.
But after a few weeks of wild swings, the market is down roughly 9 percent this year and a little more than 13 percent from its peak. Even as 20.5 million people lost their jobs in April, the S&P 500 stock index logged its best month in 33 years. The index was basically unchanged on Monday. After a few weeks of wild swings, the market is down roughly 9 percent this year and a little more than 13 percent from its peak. Even as 20.5 million people lost their jobs in April, the S&P 500 stock index logged its best month in 33 years. The index was basically unchanged on Monday.
Conventional wisdom would explain the market’s comparatively modest losses this way: Because markets tend to be forward-looking, investors have already accounted for what’s expected to be a cataclysmic drop in second-quarter activity and are forecasting a relatively rapid economic recovery afterward.Conventional wisdom would explain the market’s comparatively modest losses this way: Because markets tend to be forward-looking, investors have already accounted for what’s expected to be a cataclysmic drop in second-quarter activity and are forecasting a relatively rapid economic recovery afterward.
But for decades, the market has been growing increasingly detached from mainstream of American life. There are a few reasons:But for decades, the market has been growing increasingly detached from mainstream of American life. There are a few reasons:
The giant companies that make up the S&P 500 operate under very different circumstances than the nation’s small businesses, workers and cities and states. They are highly profitable, hold significant sums of cash and have regular access to public bond markets.The giant companies that make up the S&P 500 operate under very different circumstances than the nation’s small businesses, workers and cities and states. They are highly profitable, hold significant sums of cash and have regular access to public bond markets.
Stock ownership is heavily skewed to the richest segments of the population, who are least likely to feel the pain of an economic downturn.Stock ownership is heavily skewed to the richest segments of the population, who are least likely to feel the pain of an economic downturn.
The Federal Reserve’s actions have also bolstered investors’ confidence that the bottom won’t fall out of the market.The Federal Reserve’s actions have also bolstered investors’ confidence that the bottom won’t fall out of the market.
Americans have long relied on the stock market as a proxy for the U.S. economy. The current economic fallout, however, could snap any illusions that the logic of the market is derived, in any consistent way, from real-world events.Americans have long relied on the stock market as a proxy for the U.S. economy. The current economic fallout, however, could snap any illusions that the logic of the market is derived, in any consistent way, from real-world events.
Randal K. Quarles, the Fed’s vice chair for banking supervision, will tell lawmakers this week that banks are playing a key role in getting credit to consumers and businesses as the coronavirus crisis unfolds in the economy and in financial markets.Randal K. Quarles, the Fed’s vice chair for banking supervision, will tell lawmakers this week that banks are playing a key role in getting credit to consumers and businesses as the coronavirus crisis unfolds in the economy and in financial markets.
“Banks entered this crisis in a position of strength,” Mr. Quarles said in prepared remarks released on Monday afternoon, adding that “banking organizations are well-positioned to serve as a source of strength, not strain, in the current crisis.”“Banks entered this crisis in a position of strength,” Mr. Quarles said in prepared remarks released on Monday afternoon, adding that “banking organizations are well-positioned to serve as a source of strength, not strain, in the current crisis.”
Mr. Quarles, long an ally of the banking industry, said that financial institutions “now have an essential part to play in addressing that disruption — as a bridge between the start of this crisis and the completion of our economic recovery.”Mr. Quarles, long an ally of the banking industry, said that financial institutions “now have an essential part to play in addressing that disruption — as a bridge between the start of this crisis and the completion of our economic recovery.”
Banks both touched off and exacerbated the 2008 crisis, but this time around, they have been made a key part of many of the government’s lending programs. Their stronger position coming into the crisis, the result of new rules and regulations put into place in the wake of the last crisis, has helped enable that.Banks both touched off and exacerbated the 2008 crisis, but this time around, they have been made a key part of many of the government’s lending programs. Their stronger position coming into the crisis, the result of new rules and regulations put into place in the wake of the last crisis, has helped enable that.
Still, there have been some concerns that banks should be conserving more capital because the duration of the coronavirus pandemic and the extent of its economic fallout remain unknown. Some former officials have urged the Fed to halt bank dividend payouts so that the companies can conserve capital in case the crisis drags on, potentially leaving them on shakier footing and with less room to lend. Still, there have been some concerns that banks should be conserving more capital because the duration of the coronavirus pandemic and the extent of its economic fallout remain unknown. Some former officials have urged the Fed to halt bank dividend payouts so that the companies can conserve capital in case the crisis drags on.
Mr. Quarles did not address those concerns in the text of his speech but could face questions from lawmakers at the hearings, which begin on Tuesday in front of the Senate Banking Committee and Wednesday before the House Financial Services Committee. Mr. Quarles did not address those concerns in the text of his speech, but he could face questions from lawmakers at the hearings, which begin on Tuesday in front of the Senate Banking Committee and Wednesday before the House Financial Services Committee.
With air travel nearly shut down during a pandemic, Delta Air Lines has swung from huge profits and is bleeding money. On Wednesday, it will drop 10 more airports from its already skeletal network.With air travel nearly shut down during a pandemic, Delta Air Lines has swung from huge profits and is bleeding money. On Wednesday, it will drop 10 more airports from its already skeletal network.
Delta and the other major airlines in the United States are losing $350 million to $400 million a day as expenses like payroll, rent and aircraft maintenance far exceed the money they are bringing in. And even though they are slashing schedules, they are averaging an anemic 23 passengers on each domestic flight.Delta and the other major airlines in the United States are losing $350 million to $400 million a day as expenses like payroll, rent and aircraft maintenance far exceed the money they are bringing in. And even though they are slashing schedules, they are averaging an anemic 23 passengers on each domestic flight.
Passenger traffic is down about 94 percent and half of the industry’s 6,215 planes are parked, according to Airlines for America, a trade group.Passenger traffic is down about 94 percent and half of the industry’s 6,215 planes are parked, according to Airlines for America, a trade group.
Yet, devastating as the downturn has been, the future is even more bleak. With much of the world closed for business, and no widely available vaccine in sight, it may be months, if not years, before airlines operate as many flights as they did before the crisis. Even when people start flying again, the industry could be transformed, much as it was after the Sept. 11 terrorist attacks.Yet, devastating as the downturn has been, the future is even more bleak. With much of the world closed for business, and no widely available vaccine in sight, it may be months, if not years, before airlines operate as many flights as they did before the crisis. Even when people start flying again, the industry could be transformed, much as it was after the Sept. 11 terrorist attacks.
The crisis could push some airlines, especially smaller ones, into bankruptcy or make them takeover targets. Consumer fears about catching the virus on crowded planes could lead to reconfigured seating. Carriers may initially entice wary travelers with discounts, but if they can’t fill up flights, they may resort to raising ticket prices.The crisis could push some airlines, especially smaller ones, into bankruptcy or make them takeover targets. Consumer fears about catching the virus on crowded planes could lead to reconfigured seating. Carriers may initially entice wary travelers with discounts, but if they can’t fill up flights, they may resort to raising ticket prices.
The former Mayor Michael Bloomberg of New York lays out how the government can help companies start up again in a Bloomberg Opinion piece. It’s a mix of protecting workers and businesses. Michael Bloomberg, the former mayor of New York, laid out how the government could help companies restart in an opinion piece for his eponymous media outlet. He proposes a mix of protecting workers and businesses.
Companies should be shielded from lawsuits if they meet certain criteria, including providing workers with protective equipment, imposing social-distancing and offering flexible sick leave. Otherwise, Mr. Bloomberg writes, “these suits could impose a significant economic cost, create uncertainty for businesses, impede needed investment and potentially cause production bottlenecks.” Companies should be shielded from lawsuits if they meet certain criteria, including providing workers with protective equipment, imposing social distancing and offering flexible sick leave. Otherwise, Mr. Bloomberg writes, “these suits could impose a significant economic cost, create uncertainty for businesses, impede needed investment and potentially cause production bottlenecks.”
Companies that don’t follow the reopening guidelines could still be sued, he writes.Companies that don’t follow the reopening guidelines could still be sued, he writes.
Congress should expand unemployment insurance for high-risk workers and let companies offer tax-free “hazard pay” for those who must be at work, Mr. Bloomberg writes. Lawmakers should also create a public fund for employees in critical industries.Congress should expand unemployment insurance for high-risk workers and let companies offer tax-free “hazard pay” for those who must be at work, Mr. Bloomberg writes. Lawmakers should also create a public fund for employees in critical industries.
And Washington should relax health-privacy laws that would otherwise prevent companies from verifying whether employees had been sick or tracing their contacts. And Washington should relax health-privacy laws that would otherwise prevent companies from verifying whether employees had been sick or from tracing their contacts.
A 112-year-old German company has found itself playing an unexpected yet crucial role in supplying the country with the face masks its population needs to safely reopen its economy.A 112-year-old German company has found itself playing an unexpected yet crucial role in supplying the country with the face masks its population needs to safely reopen its economy.
The company, Melitta, made coffee filters and vacuum cleaner bags before the coronavirus pandemic hit, but it quickly retooled one of its coffee filter production systems to make masks that filter out bacteria as efficiently as simple medical masks. They are shaped like the coffee filters Melitta still makes for sale in grocery stores around the world, but they are made of material that is similar to Melitta’s vacuum cleaner bags, layers of melt-blown and spun-blown microfiber. The company, Melitta, makes coffee filters and vacuum cleaner bags. When the coronavirus pandemic hit, it retooled one of its coffee filter production systems to make masks that filter out bacteria as efficiently as simple medical masks. They are shaped like the coffee filters Melitta still makes for sale in grocery stores around the world, but they are made of material that is similar to Melitta’s vacuum cleaner bags, layers of melt-blown and spun-blown microfiber.
So far, the company has produced 10 million masks, but they are not yet for sale to the public and Melitta has yet to set a price for their wide distribution. One of its executives, Rene Korte, said Melitta can sell the masks at prices comparable to what masks made in Asia sold for before the crisis hit.So far, the company has produced 10 million masks, but they are not yet for sale to the public and Melitta has yet to set a price for their wide distribution. One of its executives, Rene Korte, said Melitta can sell the masks at prices comparable to what masks made in Asia sold for before the crisis hit.
The company is now working on designing earloops that can be made of similar material and can fold out of the mask, which would allow it to eliminate the rubber bands currently used to affix the masks to wearers’ faces.The company is now working on designing earloops that can be made of similar material and can fold out of the mask, which would allow it to eliminate the rubber bands currently used to affix the masks to wearers’ faces.
Saudi Arabia’s government said Monday that it would triple the rate of its value added tax on sales to 15 percent and take other measures to shore up state finances as the combination of lower oil prices and the costs of fighting the coronavirus pandemic strain the kingdom’s budget.Saudi Arabia’s government said Monday that it would triple the rate of its value added tax on sales to 15 percent and take other measures to shore up state finances as the combination of lower oil prices and the costs of fighting the coronavirus pandemic strain the kingdom’s budget.
The minister of finance, Mohammad Aljadaan, also said that spending on Crown Prince Mohammed bin Salman’s Vision 2030 projects, which aim to diversify the Saudi economy and create new jobs for Saudis, would be cut, according to the official Saudi Press Agency.The minister of finance, Mohammad Aljadaan, also said that spending on Crown Prince Mohammed bin Salman’s Vision 2030 projects, which aim to diversify the Saudi economy and create new jobs for Saudis, would be cut, according to the official Saudi Press Agency.
The new measures would boost state coffers by around 100 billion Saudi riyals, or about $26 billion.The new measures would boost state coffers by around 100 billion Saudi riyals, or about $26 billion.
On Monday, the Saudi government also said that it had ordered Saudi Aramco, the national oil company, to cut a further 1 million barrels a day in oil production, to about 7.5 million barrels a day in June, the lowest level in nearly two decades. The aim, according to the energy ministry, is to encourage other producers to comply with previously agreed output trims and make additional cuts of their own.On Monday, the Saudi government also said that it had ordered Saudi Aramco, the national oil company, to cut a further 1 million barrels a day in oil production, to about 7.5 million barrels a day in June, the lowest level in nearly two decades. The aim, according to the energy ministry, is to encourage other producers to comply with previously agreed output trims and make additional cuts of their own.
Kuwait and the United Arab Emirates, both Saudi allies, said they would add another 180,000 barrels a day in trims. Kuwait and the United Arab Emirates, both Saudi allies, said they would trim another 180,000 barrels a day.
Steak ‘n Shake permanently closed 57 restaurants in the first quarter because of the coronavirus pandemic, the company’s parent, Biglari Holdings, said in its quarterly earnings report. Biglari, whose properties include Western Sizzlin restaurants, Maxim magazine and First Guard Insurance, reported that revenue fell to $136 million in the first quarter, from $182 million the same quarter a year earlier. The company had 605 company-operated and franchise Steak ‘n Shake and Western Sizzlin restaurants as of March 31.Steak ‘n Shake permanently closed 57 restaurants in the first quarter because of the coronavirus pandemic, the company’s parent, Biglari Holdings, said in its quarterly earnings report. Biglari, whose properties include Western Sizzlin restaurants, Maxim magazine and First Guard Insurance, reported that revenue fell to $136 million in the first quarter, from $182 million the same quarter a year earlier. The company had 605 company-operated and franchise Steak ‘n Shake and Western Sizzlin restaurants as of March 31.
Twitter will add new labels to tweets that contain misinformation about the coronavirus, the social media company said on Monday in a blog post. Tweets that contain “potentially harmful, misleading information” related to the virus will now include a link to additional information from trusted sources like public health officials. Posts that Twitter considers particularly harmful or misleading will be hidden behind a warning label, which cautions viewers that the tweet contains information that “conflicts with guidance from public health experts.”Twitter will add new labels to tweets that contain misinformation about the coronavirus, the social media company said on Monday in a blog post. Tweets that contain “potentially harmful, misleading information” related to the virus will now include a link to additional information from trusted sources like public health officials. Posts that Twitter considers particularly harmful or misleading will be hidden behind a warning label, which cautions viewers that the tweet contains information that “conflicts with guidance from public health experts.”
The hotel giant Marriott International reported a 92 percent drop in profits in the first quarter as the coronavirus pandemic closed many of its hotels. Marriott said its net income for the first quarter fell to $31 million, down from $375 million a year ago.The hotel giant Marriott International reported a 92 percent drop in profits in the first quarter as the coronavirus pandemic closed many of its hotels. Marriott said its net income for the first quarter fell to $31 million, down from $375 million a year ago.
Avianca, Colombia’s flagship airline and one of the world’s oldest carriers, filed for bankruptcy protection in federal court in New York late on Sunday. The company said that the drop in air travel had eroded its revenue by more than 80 percent and that it is in talks to secure financial lifelines from the government of Colombia and those of its other markets.Avianca, Colombia’s flagship airline and one of the world’s oldest carriers, filed for bankruptcy protection in federal court in New York late on Sunday. The company said that the drop in air travel had eroded its revenue by more than 80 percent and that it is in talks to secure financial lifelines from the government of Colombia and those of its other markets.
Reporting was contributed by Kate Conger, Neal E. Boudette, Jeanna Smialek, Michael de la Merced, Liz Alderman, Julie Creswell, Stanley Reed, Niraj Chokshi, Brooks Barnes, Clifford Krauss, Christopher F. Schuetze, Emily Flitter, Conor Dougherty, Gregory Schmidt, Jason Karaian, Mohammed Hadi, Ana Swanson, David Yaffe-Bellany, Michael Corkery, Keith Bradsher, Carlos Tejada, Daniel Victor and Kevin Granville.Reporting was contributed by Kate Conger, Neal E. Boudette, Jeanna Smialek, Michael de la Merced, Liz Alderman, Julie Creswell, Stanley Reed, Niraj Chokshi, Brooks Barnes, Clifford Krauss, Christopher F. Schuetze, Emily Flitter, Conor Dougherty, Gregory Schmidt, Jason Karaian, Mohammed Hadi, Ana Swanson, David Yaffe-Bellany, Michael Corkery, Keith Bradsher, Carlos Tejada, Daniel Victor and Kevin Granville.