Elon Musk's Tesla Faces Difficulty Reopening In California, Might Relocate In Texas Or Nevada

Even as California’s governor Gavin Newsom has allowed manufacturing sectors to open their units on a state level, the local authorities in different parts of the U.S. state have decided to not relax the lockdown like Alameda County.

Here, the lockdown regulations have been recently extended in response to the new coronavirus pandemic and ordered the nonessential business to remain closed to the end of May. But this is where Tesla’s factory is located and Elon Musk is determined to open it despite the restrictions.

And even as the Alameda County's Public Health Department released a statement, assuring Musk that the Fremont factory will be allowed to operate soon, Musk reopened the factory May 11. The health department issued another statement to Tesla, requesting it to abide by county regulations or to be ready for "further enforcement measures."

As the Tesla-Alameda County tussle continues, with Musk filing a lawsuit against Alameda County in defiance of municipal orders, President Donald Trump and Secretary of Treasury Steve Mnuchin, have lent their support to him.

"California should let Tesla & @elonmusk open the plant, NOW," Trump tweeted. "It can be done Fast & Safely!"

"I agree with Elon Musk," Mnuchin told CNBC. "He's one of the biggest employers and manufacturers in California, and California should prioritize doing whatever they need to do to solve those health issues so that he can open quickly and safely."

Government leaders of other U.S. states are also coming forward, offering Musk to relocate Tesla to their region and function without restrictions.

"Elon Musk could save billions in taxes if Tesla moves its headquarters to Nevada or Texas. Just saying," tweeted Texas Governor Greg Abbott. Interim Las Vegas Mayor Michele Fiore also offered the Nevada city to Musk for relocating Tesla in a tweet.

California’s governor Newsom shared, during a recent news briefing, that he was not aware that Musk wanted to reopen Fremont's factory and stressed that he has always been a “strong advocate and supporter, early adopter with technology.”

“I have not only known that company, but I've known its founder for many, many years," he added. "I have great reverence for their technology, for their innovative spirit, for their leadership, and I have great expectations that we can work through, at the county level, the issue with this particular county and this company in the next number of days."