The last earthquake to hit California was in 1994. To say California is overdue for a major shaking is quite the understatement. Apart from the nightmare casualty and death count that a major quake could bring, lies the other awful reality; the worlds 6th largest economy would be figuratively and literally torn apart. The ramifications for the state and in particular, Tesla could be staggering.
Tesla is really starting to hit its stride. The first two production models, the S and X, have been heralded as breakthrough vehicles and despite their steep price tags, they have sold rather well. Then came the more affordable Model 3, a game changer with a price more in line with what average people can afford, a fact reflected in the nearly half a million reservations Tesla took in after the vehicle was formally announced. After some, let’s face it, anticipated production issues, the company has begun making very good progress on Model 3 deliveries and now stands at the precipice of some much needed revenue as Model 3 deliveries kick in greater numbers.
Here is the problem; Tesla sits on the ring of fire, a very busy and dangerous geologic neighborhood that is ready and ripe to erupt some-where in California at any time. The amount of energy and pressure that has built up within the earth, since that last quake, is very significant and could result in one of the worst quakes the state has ever seen. The really scary question for Tesla, apart from the obvious physical danger to employees and management; what happens if Tesla’s factory and California’s infrastructure are so significantly damaged, Tesla cannot deliver vehicles for weeks or months? Does Tesla have the cash to weather such an emergency?
Image – By Gary B. Edstrom – Photo by Gary B. Edstrom. Transferred from earlier upload at en.wikipedia, Public Domain, https://commons.wikimedia.org/w/index.php?curid=5217529