Tesla Owners & Shareholders Speak Out Against Alameda County

Tesla Fremont plant

Tesla Fremont plant

In a series of tweets Saturday morning, Musk announced he would move the company's headquarters and flagship Fremont factory, as well as future programs to Texas and Nevada - out of California. Not to mention bring a lawsuit.

Musk on Saturday announced that Tesla was filing a lawsuit against Alameda County, where the facility is located, immediately. According to the businessman, they were acting "contrary to the governor, the president, our constitutional freedoms, and just plain common sense".

"Frankly, this is the final straw", Musk tweeted.

He wrote that whether the company keeps any manufacturing in Fremont depends on how Tesla is treated in the future.

Musk has been scouting locations for a new United States factory to build the Cybertruck model that Tesla plans to start producing late next year.

Musk has been pushing to re-open the factory yesterday after California Gov. Gavin Newsom issues guidance on Thursday saying manufacturers can re-open, subject to county officials agreeing with the plans.

Musk at first defied Alameda's mid-March shutdown order and resisted pressure from the county and Fremont to idle the factory. Meanwhile, Tesla CEO Elon Musk took to Twitter to threaten to leave California altogether while the firm released a blog explaining these recent circumstances.

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He said state health officials were reviewing 73 cases where children exposed to COVID-19 also exhibited symptoms of the syndrome. "This is every parents' nightmare, right, that your child may actually be affected by this virus", Reuters quoted him as saying.

However, Alameda County, along with several other Bay Area counties and cities, last week extended the stay-at-home orders until the end of May and, during a video streamed town hall meeting Friday, said that Tesla did not have the "green light" to reopen, Reuters reported.

"All businesses within the County must comply with the May 4th Health Officer Order and if a business does not meet the limited criteria stated in that Order to reopen, then they are out of compliance".

Arguing their cause, the lawyers for the electric auto manufacturer noted that "Tesla is permitted, and continues, to operate its factory and other facilities in neighboring San Joaquin County". But it also said residents and businesses had made sacrifices to protect the health of people in the region.

"It is our collective responsibility to move through the phases of reopening and loosening the restrictions of the shelter-in-place order in the safest way possible, guided by data and science", it said. "We have not said it is appropriate to move forward".

In a note to investors, Ives wrote that there was now a high-stakes poker game between Musk and county officials - and Musk showed his cards. He said that Tesla should be allowed to reopen because it learned how to deal with Covid-19 through its factory in Shanghai, China, which is now the company's only operating plant.

The Fremont factory has an annual production capacity of about 490,000 vehicles and employed more than 10,000 people until its March stoppage.

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