Published 12:40 IST, May 14th 2020
Alameda County permits Tesla to resume operations, albeit with strict safety guidelines
The approval ends a long tussle between the entrepreneur and the authorities of Alameda County, which involved a lawsuit and multiple accusatory tweets.
Tesla founder and CEO Elon Musk has been permitted to reopen the Tesla factory as early as next week in Fermont after officials evaluated the firm's Prevention and Control Plan for the factory, ending a long tussle between the entrepreneur and the authorities of Alameda County, which involved a lawsuit and multiple accusatory tweets.
Tesla set to officially resume operations
In a series of tweets, Alameda County stated that it received the prevention and control plan and had held discussions with the firm, recommending some updates to the plans and if those updates are followed, then all manufacturing operations can resume.
The local administration will be coordinating the police to ensure that the physical distancing guidelines are being maintained in the firm.
Over the last week, Musk has expressed his frustration over the inability to restart operations in his manufacturing plant. On Monday, in an act of defiance, he announced that he will be resuming operations and that if the local authorities have to arrest someone, it should be him.
California Governor Gavin Newsom has allowed manufacturing facilities to reopen, however, has also stated that County authorities can decide if the regions are fit to reopen or not. The Alameda County authorities, in which the Tesla factory is based, have not permitted the opening of factories. He also stated that counties can impose restrictions that are more stringent than state orders.
However, Musk has contested the decision, stating that it is unconstitutional and that overly aggressive. Tesla filed a lawsuit in asking the court to invalidate the Alameda County rules which do not permit him to reopen the factory. In the lawsuit, Tesla accused the Alameda County Health Department of overstepping federal and state coronavirus restrictions when it stopped Tesla from restarting production at its factory in Fremont. The lawsuit contends Tesla factory workers are allowed to work during California’s stay-at-home order because the facility is considered “critical infrastructure.”
Musk has also stated that all other auto firms across the United States have been allowed to resume and claimed that the decision was unfair and putting Tesla on a back foot. Over the weekend, he threatened to pull the factory out of California if the issue was not resolved.
The lack of production in Fremont has cut off Tesla’s revenue and is a big financial strain. On a conference call last month, Musk said the Fremont facility produces the majority of its vehicles. He called the closure of Fremont a “serious risk.”
Updated 12:40 IST, May 14th 2020