Tesla Files Lawsuit Challenging County Shutdown of Production Facility During COVID-19

Electric car maker Tesla has filed a lawsuit against Alameda County, California, where its Fremont production plant is located, in light of County restrictions prohibiting the Tesla factory from fully reopening pursuant to the County’s current shelter in place order. The lawsuit seeks, among other things, to enjoin the County from enforcing its order against the company, and a declaratory judgment that the order is unconstitutional as applied to Tesla.

Tesla’s lawsuit argues that the County’s position that the company is not an essential business and therefore may not produce vehicles at full capacity runs counter to state and federal guidelines regarding which businesses may continue to operate during the COVID-19 pandemic. Tesla has resumed production since filing its lawsuit, and CEO Elon Musk has threatened to move the factory out of California depending on how the dispute with the County evolves.

Additional Reading

Complaint, Tesla Inc. v. County of Alameda, filed May 9, 2020, via Justia Dockets

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