Yesterday Elon Musk, Tesla CEO, threatened to pull the company's headquarters and factory out of California in an intensifying spat with the officials of the government. They have stopped the firm from restarting its electric vehicle manufacturing.

Musk, on Twitter, also threatened to file charges over the COVID-19 restrictions of the Alameda County Health County Department that have prevented Tesla from starting production again of its Fremont factory, south of San Francisco.

"Frankly," the CEO posted on Twitter, "this is the final straw." The company, he added, is now moving its headquarters and future programs immediately to Nevada or Texa.

Also, according to him, whether Tesla is retaining any manufacturing in Fremont relies on how the firm will be treated later on.

Since the release of Tesla's first-quarter earnings on April 29, Musk has been ranting about the stay-at-home order issued in the state. He called the constraints "fascist," and urged the government "to stop taking freedom" from people.


An Order Forcing Tesla to Close Its Fremont Plant

According to a report, a directive in San Francisco Bay Area that has six counties obliged Tesla to shut down its Fremont factory starting March 23 to help in preventing the virus from spreading.

The order was extended until end-May. According to public health experts, the orders have lessened the number of COVID-19 cases across the nation.

California Gov. Gavin Newsom has allowed the counties in Bay Area to continue constraints while relaxing them in the other areas of California.

Meanwhile, emails on Saturday, seeking comments from Gov. Newsom, and the public health officer of Alameda County have not yet been returned.

Essentially, COVID-19 leads to moderate or mild symptoms for many people. It has infected more than 1.3 million and killed over 80,000 people in the United States, and the numbers continue to rise as of this writing.


Musks Tweets Amid Reopening of Competing Automakers across the Nation

Musk's Twitter posts arrive as competing car manufacturers are beginning to reopen their factories in the U.S. Toyota is scheduled to restart its production on Monday.

Meanwhile, Ford, Fiat Chrysler, and General Motors all intend to reopen their plants progressively on May 18. Tesla is the lone car manufacturer with a plant in California.

Incidentally, the CEO's threats came following a series of strange Twitter posts earlier this month, which include one saying, the stock price of Tesla was reportedly too high. In addition, Musk posted parts of the American national anthem, from which he said he would sell his houses and other properties.

Despite his threat, according to reports, it would be difficult and costly to switch production from Fremont to Nevada or Texas swiftly. The facility in Fremont, which was previously run by joint Toyota and General Motors, is presently Tesla's lone U.S. vehicle assembly factory.

More so, the firm would reportedly lose crucial production if it closed the factory down to transfer equipment. Daniel Ives, an analyst from Wedbush Securities, said via a note to investors that moving away from its factory's current location would take at least, up to 18 months.

Additionally, Ives added, "It could add risk to the logistic and manufacturing process in the meantime." However, Musk is reportedly planning another US factory to improve output, perhaps in Texas, and could transfer production once the said plant "is up and running."


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