Tesla chief executive officer (CEO) Elon Musk has warned that he will move the company's headquarters (HQ) out of California following lockdown issue.
Following the lockdown row with Alameda County officials, Tesla CEO Elon Musk has announced that the company will move its HQ out of California. He added that the firm will file a lawsuit against Alameda County.
In a tweet, Musk wrote: "Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen[t] on how Tesla is treated in the future. Tesla is the last carmaker left in CA."
The county's health department refused to allow the reopening of the Tesla factory on Friday, citing lockdown measures. The factory has over 10,000 workers, and produces around 415,000 vehicles every year.
Shelter-in-place order
In March, the local government implemented a shelter-in-place order to address the coronavirus outbreak but Tesla kept its Northern California factory operational.
The Alameda County Sheriff’s office criticized Tesla for not complying with the shelter-in-place order. The local sheriff’s office pointed out that the company can continue “minimum basic operations” but should halt all other activity.
Under the shelter-in-place order, only roles required for essential businesses to maintain “basic operations,” including security, payroll and similar activities, are exempt.
While Tesla declined to comment, it sent an email to its employees saying it has received “conflicting guidance from different levels of government” about how it should respond to the shelter-in-place order.
The email claimed: “We still do not have a final word from the city, county, state and federal government on the status of our operations.”
However, Alameda County Sheriff’s Office public information officer Ray Kelly said said they have discussed the matter with Tesla and explained that employees were permitted to go to work for tasks such as payroll, but it should not attempt to keep assembly lines running.
Kelly argued: “They are still producing cars, and that is a not an essential function of business.”
Unlike Tesla, other automobile firms, such as Ford, General Motors and Fiat Chrysler, have all announced that they would temporarily close down production amidst the coronavirus outbreak.
Tesla's Future in California
While California's state government has eased some restrictions this week that allowed businesses to resume operations, counties may issue their own criteria for which businesses may reopen.
Alameda County maintained its position to keep all but essential businesses shut until the end of May. Musk claimed that the future of the factory could now be in doubt.
Prior to Musk's announcement, Alameda County issued a statement saying: "We welcome Tesla's proactive work on a reopening plan, so that once they fit the criteria to reopen, they can do so in a way that protects their employees and the community at large."
Musk has received criticism over his take on the ongoing coronavirus pandemic. He tweeted on March 6 that the “panic” surrounding the virus was “dumb.”
He has also continually opposed "fascist" lockdown measures, tweeting "FREE AMERICA NOW" last month.
