CEO Elon Musk tweeted today that Tesla would sue Alameda County and move its headquarters out of state. This was after health officials cautioned Tesla against reopening its California car factory yesterday.
Hours later, Tesla’s lawyers filed suit in US District Court in the Northern District of California. It was seeking an injunction against the county’s shelter-in-place order because it “contradicts” the Governor’s Order.
It was to the extent of restricting the operation of business operating in the federal critical infrastructure sectors.
Musk said on Twitter that Tesla is suing Alameda County immediately. He further said that the unelected & ignorant interim Health Officer of Alameda is acting contrary to the Governor.
Also, it is acting contrary to the President, their Constitutional freedom & just plain common sense, he added.
Musk has said that the restrictions were not democratic. They are a bit worried about not being able to resume production in the Bay Area. This should be identified as a serious risk.
He also urged supporters to voice their disagreement as strongly as possible with the county.
An Alameda County spokesperson gave the following statements:
The county Health Care Services Agency and the Public Health Department have been working closely with Tesla. This is a collaborative, good-faith effort to develop and implement a safety plan. The plan allows for reopening while protecting the health and well-being of thousands of Tesla employees.
The spokesperson added that Tesla had been responsive to guidance and recommendations. And they look forward to coming to an agreement on an appropriate safety plan very soon.
Alameda County Remains Firm with its Shelter in Place Order
The spokesperson continued saying they appreciate that their residents and businesses have made tremendous sacrifices. And that together they have been able to save lives and protect community health in their region.
It is their collective responsibility to move through the phases of reopening and loosening the restrictions of the Shelter-in-Place Order. And that it should be in the safest way possible, guided by data and science.
Tesla yesterday announced plans to resume limited operations at its Fremont facility. Furthermore, it would bring back about 30 percent of its workforce.
But officials in Alameda County said yesterday that it was still under a shelter-in-place order. And that Tesla didn’t meet its criteria to reopen.
Erica Pan, Alameda County’s health officer said they have not said that it’s appropriate to move forward.
California Governor Gavin Newsom said Thursday, that state-level guidance allowed manufacturing to resume some production. But it didn’t supersede county-level restrictions.
The company had unsuccessfully tried to argue that its production should be considered critical infrastructure.
The Fremont plant, where Tesla assembles its Models 3, S, X, and Y vehicles, closed temporarily on March 23rd. This was to comply with the shelter-in-place order.
Tesla has reduced pay for all its US salaried employees as of April 13th. It has put most hourly workers who can’t work remotely on unpaid furlough.
It was unclear what would happen to the roughly 10,000 workers at the Fremont plant. That is if Tesla were to move operations out of state, as Musk tweeted.
COMMENTS