Tesla files suit against California’s Alameda County

Elon Musk

Jim Watson | AFP | Getty Images

Tesla on Saturday filed a lawsuit against California Alameda County in the US District Court for the Northern District of California, saying the county rules contradict state policy on business closings. Tesla CEO Elon Musk said in a tweet that the company will press charges against the county on Saturday.

At the end of the day on March 23, Tesla ceased operations at its Fremont plant in the midst of the social distancing measures implemented by the county due to the coronavirus pandemic. Tesla was “affected by inefficiencies related to the temporary suspension of production and deliveries to many locations” in the first quarter, the company said last week.

Tesla asked for a permanent injunction that would prevent the enforcement of county orders. He wants the court to state that county rules violate the Fourteenth Amendment and go against an order from Governor Gavin Newsom that said companies in 16 industries could stay active.

The Newsom office defined a “four-step framework to allow Californians to gradually reopen certain low-risk businesses and public spaces” in a declaration Monday. The release said that “counties may choose to keep more restrictive measures in place based on their local conditions, and the state expects some counties to keep their more robust home stay orders in place after 8 may”.

A Tesla factory in San Joaquin County, directly east of Alameda County, is in operation.

“There is no rational basis for this disparate treatment of two neighboring Tesla facilities, both operating in the federal critical infrastructure sectors,” the company said.

Download the complaint here.

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