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Tesla is suing local authorities in California when the electric car maker pushes to reopen its factory there, and Chief Executive Elon Musk threatens to move the company’s headquarters to Texas or Nevada.
Musk has been pushing to reopen the Tesla factory in Fremont, California, after the Alameda County health department said the automaker should not reopen because local blockade measures to curb the spread of the coronavirus remain in effect.
Tesla filed a lawsuit against the county on Saturday, calling the ongoing restrictions a “takeover” by the county since the California governor had said Thursday that manufacturers in the state could reopen.
The company said Alameda was against the federal and California constitutions, in addition to defying the governor’s order, in the lawsuit filed in San Francisco federal court.
Alameda County, where the Fremont factory is located, will remain closed until the end of May, and only essential businesses will be allowed to reopen. County officials did not immediately respond to a request for comment on the lawsuit.
The frank musk also went to Twitter on Saturday to complain and threatened to leave the state.
“Whether we even maintain Fremont’s manufacturing activity will depend on how Tesla is treated in the future,” he tweeted. The San Francisco Bay Area facility is currently the only Tesla vehicle factory in the United States.
Elon musk
(@Elon Musk)Frankly, this is the drop that fills the glass. Tesla will now move its headquarters and future programs to Texas / Nevada immediately. Whether we even retain Fremont’s manufacturing activity will depend on how Tesla is treated in the future. Tesla is the last remaining automaker in California.
Alameda County said Saturday that it has been working with Tesla to develop a safety plan that “allows for the reopening while protecting the health and well-being of the thousands of employees” who work at the factory, and is looking forward to coming to an agreement on a security plan very soon.
Fremont Mayor Lily Mei expressed concern about the possible financial implications of continuing to seek shelter-in-place with no provisions for manufacturers like Tesla to resume. Mei on Saturday urged the county to work with companies on “acceptable guidelines for reopening.”
Musk had told employees Thursday that limited production would restart in Fremont on Friday afternoon.
Tesla builds more than 415,000 cars a year at the Fremont plant and moving the entire production facility would be a daunting task.
Wedbush analyst Dan Ives calculated on Saturday that the company could take 12-18 months to relocate production.
The threat to relocate the facility comes as Tesla aims to boost Fremont production of its Model Y sports utility vehicle, the automaker’s most profitable vehicle to date.
Musk, who argued with California officials in March about whether Tesla had to stop production in Fremont, had criticized the shutdown and orders to stay home, calling them “serious risk” to American business and “unconstitutional.”
Tesla shares have risen 127% since March 18, their latest closing low, including a 16.8% gain in the last trading week to close at $ 819.42 on Friday.
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