Tesla Sues Alameda County Over Factory Reopening Restrictions
Tesla takes legal action against Alameda County to overturn local health orders that block its Fremont factory from resuming operations. CEO Elon Musk threatens to move the company's headquarters out of California if the shutdown continues.
Tesla files a lawsuit against Alameda County to invalidate local health orders that prevent the automaker from reopening its Fremont factory. The legal action, which seeks injunctive and declaratory relief, follows CEO Elon Musk's threat to move the company's headquarters and future programs to Texas or Nevada immediately. Tesla plans to bring back about 30% of its factory workforce despite the county's stay-at-home order.
The conflict stems from conflicting directives between state and local authorities. Tesla bases its reopening plans on new guidance from California Governor Gavin Newsom that allows manufacturers to resume operations. However, Alameda County extends its stricter stay-at-home order through the end of May and specifically keeps manufacturing restrictions in place.
The lawsuit argues that Alameda County contradicts its own published guidance, which recognizes that businesses can operate to manufacture batteries and electric vehicles. County health officials maintain that Tesla does not have permission to reopen and warn that resuming operations puts the company out of compliance with local health orders.