Tesla Will Not Pursue Its Lawsuit Against Alameda County Over Factory Reopening: Report

Tesla Inc. TSLA has dropped its lawsuit against California’s Alameda County, filed after it was prevented from reopening its Fremont factory.

What Happened

In the lawsuit, Tesla asserted that the county’s pandemic imposed health orders, which prohibited the reopening of its factory, stood in contrast to state policy, reported CNBC.

The automaker was seeking a permanent injunction to prevent enforcement of the county’s orders.

The lawsuit was filed earlier this month, after Tesla’s CEO, Elon Musk, announced his intention to sue the county on his social media.

Musk had said, “The unelected & ignorant 'Interim Health Officer' of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!”

Why It Matters

Tesla received approval to restart production at Fremont earlier this week after the county’s interim health officer toured the premises and approved Tesla’s health and safety plans.

Fremont is the only facility in the United States that manufactures Tesla cars, including the Model Y crossover sports utility vehicle.

According to CNBC, the lawsuit may have been gesturing on the part of Tesla, as it did not ask for a temporary restraining order, which would have allowed it to immediately proceed with manufacturing legally.

The carmaker reopened its factory in defiance of county orders in May, with Musk announcing on Twitter that if anyone was arrested as a result, it should only be him. 

Price Action

Tesla shares traded 0.13% lower at $814.51 in the after-hours session on Wednesday. The shares had closed the regular session 0.93% higher at $815.56.

Image Credit: Courtesy of Tesla.