Tesla threatens to sue Alameda County, California and move to Texas or Nevada


In a series of tweets earlier Saturday, Tesla CEO Elon Musk also threatened to relocate the company's headquarters to Texas or Nevada, which rules for on-site shelters are less restrictive.

"Frankly, this is the last straw. Tesla will now move its headquarters and future programs to Texas / Nevada immediately," Musk tweeted. Tesla did not respond to a request for comment Saturday.

"This has been a collaborative, faith-driven effort to develop and implement a reopening safety plan while protecting the health and well-being of the thousands of employees traveling to and from work at Tesla's factory," the Alameda Department of Health replied on Saturday statement to CNN Business. "The team at Tesla has been responsive to our guidance and recommendations, and we look forward to reaching an agreement on an appropriate security plan soon."

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California Prime Minister Gavin Newsom had released new guidance Thursday enabling production companies to reopen, enabling single counties to enforce stricter rules. Alameda County's refugee rule ends May 31. Texas put a May 18th date for manufacturers to resume limited operations, while Nevada allowed many resellers and non-essential businesses to reopen Saturday.

"We've been working with [Tesla], but we have not given the green light, "said Alameda County Health Officer Erica Pan during Friday's City Hall. We have not said that it is right to move on. "

Tesla's lawsuit, filed Saturday night in federal court in California's Northern District, calls for a permanent injunction that prevents the county from enforcing its emergency situation order. The company said it believed it was exempt because operations fall within the definition of critical infrastructure.

Tesla has a battery factory, called Gigafactory 1, in Sparks, Nevada, but it has no footprint in Texas. In February Musk took a Twitter poll asks his followers if it should be a Gigafactory in Texas. The results were 80% positive.

On Saturday, Musk also urged Tesla shareholders to file a lawsuit against the county for lost money given that Tesla competitors in other states could resume their operations earlier. He said Tesla should be allowed to open again because it learned how to deal with Covid-19 through its Shanghai, China factory, which is today the company's only operating facility.

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Republican Senator Ted Cruz of Texas tweeted Saturday, "Come to Texas! We welcome Tesla HQ in Texas. We love jobs and Texans want to open up and get back to work (while still staying safe and following sound science). We make a lot of cars and trucks in Texas and we will love more !! "

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