Tesla Stock Remains High Despite Investigation on Factory Safety

Tesla Inc shares were trading up by 2.29% during the most recent trading session to $300.08 per share despite the company facing an investigation from the California Occupational Safety and Health Administration (Cal-OSHA) regarding claims of serious injuries being misrepresented by the company at its factory in Fremont.

Various claims and allegations were revealed that Tesla downplayed on a report claiming Tesla failed to report a number of serious injuries on reports which were legally mandated. According to Tesla’s blog post, the said report was said to be a motivated attack by an extremist organization working with supporters of its union workers as a way to promote false information against the company.

This led to another inspection which began last Tuesday being held by Cal-OSHA and was announced on Wednesday days following the release of the said report which included the lack of yellow markings on the plant’s floors which may contribute to possible injuries and illnesses among employees. 

A representative from Cal-OSHA stated that the agency takes into serious consideration any reports of workplace hazards and any claims of employers reporting false records of injuries and illnesses in connection to the workplace.

The investigation was also announced following an announcement from Tesla’s chief executive officer Elon Musk that the Model 3 production of the Fremont plant would become 24/7 in order to meet their delivery and production goals.

Tesla Shares

Tesla shares and cash balances have declined over the past couple of quarters due to the company missing its own production and delivery targets for the mass-market Model 3 vehicle. However, the stock have briefly recovered this month following an update from the company regarding its production of the Model 3.

Shares of Tesla did not lose ground following reports of doubts regarding the company’s Fremont factory safety. Tesla shares which rose 0.28% during the regular market trading to trade at $294.17 per share on Tuesday and was seen up by as much as 2.29% during pre-market trading session to trade at $300.08 per share. The company which is scheduled to release its first quarter earnings results in less than two weeks has experienced a 1.5% decline on its shares over the last twelve months.

The stock which ended negative on Tuesday’s trading session did not budge lower due to reports of the company’s Model 3 production potentially hitting around 3,000-4,000 vehicles being completed every week following a series of comprehensive set of upgrades following a temporary suspension of their production line for a couple of days. This includes around 400 new employees being hired per week to be sent to their Fremont factory and Tesla’s Gigafactory in Nevada.

Read also: Tesla Chief Accounting Officer Leaves Company

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