The daily business briefing: May 12, 2020

1. Tesla tells workers to return to California plant

Tesla on Monday told workers to return to its California electric-car factory in defiance of a local shelter-in-place order designed to help prevent the spread of the coronavirus. "We're happy to get back to work and have implemented very detailed plans to help you keep safe as you return," the company said in an email to workers. Tesla on Saturday filed a lawsuit against Alameda County, where the Fremont factory is located, for ordering the factory to remain closed. Tesla CEO Elon Musk tweeted that the company was considering moving its California operations to Texas or Nevada due to the dispute. Treasury Secretary Steven Mnuchin said Monday that California should do whatever it takes to help Tesla reopen.

Reuters

2. Tech stocks lift Nasdaq as people turn to internet in crisis

The tech-heavy Nasdaq Composite rose by 0.8 percent on Monday for its sixth straight daily gain, its longest winning streak of the year. Shares of tech giants Amazon, Apple, and Microsoft all closed up by more than 1 percent, helping the Nasdaq outperform the broader market. Facebook, Netflix, and Google-parent Alphabet also gained. Tech shares have risen as Americans under stay-at-home orders increasingly turned to technology for work, entertainment, and shopping. "The COVID-19 pandemic has reinforced the essential role that technology plays for businesses and consumers," said Salvatore Ruscitti, U.S. equities strategist at MRB Partners. U.S. stock index futures fell slightly early Tuesday over concerns of a second wave of coronavirus cases as states gradually allow businesses to reopen.

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CNBC

3. Fauci to warn Senate of 'needless' death if states reopen too quickly

Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, is expected to warn the Senate health committee on Tuesday that if states reopen their economies too fast, Americans will experience "needless suffering and death," The New York Times reports. Fauci and three other top government doctors are scheduled to testify remotely. In an email sent late Monday night, Fauci wrote that the "major message" he hopes to convey to the committee is "if we skip over the checkpoints in the guidelines to 'Open America Again,' then we risk the danger of multiple outbreaks throughout the country. This will not only result in needless suffering and death, but would actually set us back on our quest to return to normal."

The New York Times

4. Toyota profit falls as coronavirus crisis hits car sales

Toyota Motor Corp. on Tuesday reported a sharp drop in quarterly profit as the coronavirus pandemic hurt sales and forced it to close its car factories. Toyota, Japan's top automaker, reported a $590 million profit in the quarter that ended in March, with sales dropping 8 percent. President Akio Toyoda said even reporting financial results at all was difficult in what has proven the biggest challenge since the global financial crisis, costing the company $1.4 billion in operating profit, but he said the company was adjusting by becoming leaner. Fellow Japanese automaker Honda also reported severe damage from the crisis. Honda reported a quarterly loss of $276 million, after a smaller loss in the same period last year. Sales fell by 15 percent.

The Associated Press

5. Biggest U.S. mall owner to reopen half of properties next week

Simon Property Group, the largest U.S. mall owner, said Monday that it plans to reopen about 50 percent of its 200 properties next week as states ease coronavirus lockdowns. The announcement came as the company reported quarterly earnings. Simon said its profits fell by 20.2 percent in the first quarter, which ended March 31 and therefore included only part of the damage from the coronavirus crisis. "We are now leading the effort for these local economies to get back to business," CEO David Simon said during an earnings conference call. "We want to help these local communities ... because frankly they depend on our sales taxes." Simon shares rose by 3 percent in after-hours trading.

CNBC