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Tesla sues Alameda County to force California factory reopening

Tesla filed a lawsuit Saturday against Alameda County in an effort to invalidate orders that have prevented the automaker from reopening its factory in Fremont, California.

The lawsuit, which seeks injunctive and declaratory relief against Alameda County, was first reported by CNBC. The lawsuit was filed in U.S. District Court for California’s Northern District.

Earlier Saturday, Tesla CEO Elon Musk tweeted that he was filing a lawsuit against Alameda County and threatened to move its headquarters and future programs to Texas or Nevada immediately.

Tesla had planned to bring back about 30% of its factory workers Friday as part of its reopening plan, defying Alameda County’s stay-at-home order. Musk was basing the reopening on new guidance issued Thursday by California Gov. Gavin Newsom that allows manufacturers to resume operations. The guidance won praise from Musk, who later sent an internal email to employees about plans to reopen based on the governor’s revised order. However, the governor’s guidance included a warning that local governments could keep more restrictive rules in place. Alameda County, along with several other Bay Area counties and cities, last week extended the stay-at-home orders through the end of May. The orders were revised and did ease some of the restrictions. However, it did not lift the order for manufacturing.

The lawsuit argues that by preventing Tesla from opening, the Alameda County is going against its own guidance.

“Alameda County has expressly recognized and publicized that “businesses may . . . operate to manufacture” batteries and electric vehicles,” the complaint reads. “Inexplicably, however, the Third Order as well as County officials have simultaneously insisted that Tesla must remain shuttered, thereby further compounding the ambiguity, confusion and irrationality surrounding Alameda County’s position as to whether Tesla may resume manufacturing activities at its Fremont Factory and elsewhere in the County.”

The term “third order” is a reference to a revised stay-in-place order issued by Alameda County.

On Friday, the Alameda County Health Department said Tesla had not been given “the green light” to reopen and said if the company did, it would be out of compliance with the order.

Read the full complaint here.

Tesla v Alameda County Comp… by TechCrunch on Scribd

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Elon Musk threatens to pull Tesla operations out of California and into Texas or Nevada

Tesla CEO Elon Musk said Saturday the company will file a lawsuit against Alameda County and threatened to move its headquarters and future programs to Texas or Nevada immediately, escalating a fight between the company and health officials over whether its factory in Fremont can reopen.

Tesla had planned to bring back about 30% of its factory workers Friday as part of its reopening plan, defying Alameda County’s stay-at-home order.

TechCrunch has reached out to Elon Musk directly. We will update the story if he responds.

California Gov. Gavin Newsom issued new guidance Thursday that allowed manufacturers to resume operations. The guidance won praise from Musk, who later sent an internal email to employees about plans to reopen based on the governor’s revised order. However, the governor’s guidance included a warning that local governments could keep more restrictive rules in place. Alameda County, along with several other Bay Area counties and cities, last week extended the stay-at-home orders through the end of May. The orders were revised and did ease some of the restrictions. However, it did not lift the order for manufacturing.

On Friday, the Alameda County Health Department said Tesla had not been given “the green light” to reopen and said if the company did, it would be out of compliance with the order.

In the tweet, Musk said Tesla is filing a lawsuit against Alameda County immediately. In a later tweet, he also encouraged shareholders to file a lawsuit against the county.

“The unelected & ignorant “Interim Health Officer” of Alameda is acting contrary to the Governor, the President and our Constitutional freedoms & just plain common sense!,” the tweet said. He followed up with another tweet claiming that Tesla will now move its HQ and future programs to Texas or Nevada immediately.

“If we even retain Fremont manufacturing activity at all, it will be dependent on how Tesla is treated in the future. Tesla is the last carmaker left in CA,” Musk wrote.

Tesla has operations in Nevada; it doesn’t in Texas. The company’s massive battery factory – known as Gigafactory 1 — is located in Sparks, Nevada. Tesla is seeking out a new location to build a new U.S. gigafactory that will produce the Cybertruck and Model Y crossover. Some have speculated that Texas is a top pick.

Sources have told TechCrunch that Tesla is in talks with Nashville officials to locate a factory there that will produce the Cybertruck and Model Y crossover.

“Scouting locations for Cybertruck Gigafactory. Will be central USA,” Musk tweeted in March. He added that the factory would be used to produce Model Y crossovers for the East Coast market. The first Model Y vehicles are being produced at its plant in Fremont.

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Tesla to cut salaries, furlough workers as COVID-19 shutdowns expected to last until May 4

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Pay cuts for salaried employees — which ranges from 30% for vice presidents, 20% for director-level executives and 10% for the remaining workforce — is expected to be in place until the end of the second quarter, according to the email. The salary cuts and furloughs will begin April 13. Employees who cannot work from home and have not been assigned critical …

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With the real estate industry facing headwinds, SoftBank-backed Compass lays off 15% of staff

Compass, the real estate brokerage startup backed by roughly $1.6 billion in venture funding, has laid off 15% of its staff as a result of the shifting economic fortunes created by the global response to the novel coronavirus pandemic, according to an internal email seen by TechCrunch.
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