Chamath Palihapitiya defends Elon Musk on Tesla production restart

Social Capital CEO Chamath Palihapitiya defended Elon Musk’s reopening of Tesla facilities in defiance of local government orders, telling CNBC on Tuesday that local, state and government officials need to be clearer during the set-up regulations during a pandemic.

“The federal government has this specific set of guidelines. People may think they fall within these guidelines. Then the states issue guidelines and on top of that, you have regulations at the local level. When you put it all together, it’s incredibly confusing, “Palihapitiya said on Tuesday on” Squawk Box “.

“So if you’re a business owner and you’re trying to find a way to get back to work, because you think the risks are manageable, there’s no clear way to go and get the necessary permissions to do so, “he added.

Musk is working to quickly resume production at the company’s Fremont, California plant. Monday, local TV channels showed employee cars streaming in company car parks. California Governor Gavin Newsom said on Monday that he did not know Tesla had restarted production before getting the green light from Alameda county officials. Musk tweeted confirmation that Tesla had resumed production Monday afternoon and dared to stop by the local sheriff’s office.

Although a rush to return met with strong resistance from local authorities, Musk threatened on Saturday to remove Tesla from California in a dispute with Alameda County over the closure. Tesla also filed a lawsuit against the county, asking a federal court to cancel orders from local authorities that prevented the automaker from resuming production.

Scott Haggerty, district supervisor for Fremont in the county of Alameda, told New york times County and Tesla officials were working on a plan to restart the plant on Saturday May 18, when several Michigan automakers plan to reopen. But Musk went ahead and opened the Tesla factories on Monday. Tesla said in a blog post By Saturday evening, he had developed new health and safety measures to protect his workers.

Palihapitiya said county officials should work with Musk to resume production in a consistent manner.

On Monday afternoon, the Alameda County Sheriff and the Alameda County Public Health Services Agency said in a statement: “We are actively sharing our feedback and understand that Tesla will submit a site-specific plan later Today, as per the guidelines and the California State Checklist for Manufacturing released May 7. We look forward to revisiting Tesla’s plan and reaching agreement on the protocol and schedule for reopen safely. “

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