FREMONT, CA — Electric car manufacturer Tesla voluntarily dropped its lawsuit against Alameda County without prejudice on Wednesday after the company’s Fremont plan reopened earlier this month.
Tesla filed the lawsuit on May 9, the day that Tesla CEO Elon Musk threatened to sue the county and move operations out of California. Musk filed the lawsuit, claiming that the county shutting down businesses because of the coronavirus pandemic contradicted state policy on business closures.
In a tweet May 9, Musk wrote that the “unelected and ignorant interim health officer of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense.”
Tesla's complaint, the company claims Alameda County has "created a legal quagmire by wrongly declaring that its own orders trump the state- level orders."
"Alameda County's power-grab not only defies the Governor's Order, but offends the federal and California constitutions," the company's attorneys wrote.
An Alameda County spokeswoman told The Washington Post that the plant must not be reopened. Several Northern California counties issued different orders than those issued by Gov. Gavin Newsom that allowed some businesses and manufacturers to reopen for business.
On May 12, President Donald Trump tweeted that “California should let Tesla and (Musk) open the plant NOW. It can be done Fast & Safely.”
The Alameda County Public Health Department said in a statement earlier this month that it approved reopening the Fremont plant after reviewing the company's safety plans.
“We will be working with the Fremont Police Department to verify Tesla is adhering to physical distancing and that agreed upon health and safety measures are in place for the safety of their workers as they prepare for full production,” county officials said in the release.
Tesla ceased production operations at the Fremont plant on March 23, but reopened earlier this month, which violated the county’s stay at home order. Tesla announced that it had been “impacted by inefficiencies related to the suspension of production and deliveries in many locations” during the first quarter.
In documents filed on Wednesday, the company did not specify why it decided to drop the lawsuit.