Business & Tech

Tesla, Alameda County Reach Agreement

The agreement allows Tesla to operate its Fremont assembly plant.

(Renee Schiavone/Patch)

FREMONT, CA — The Tesla assembly plant in Fremont, reopened since Monday, will continue to produce new cars after an agreement was reached between the electric car company and the Alameda County Public Health Department.

According to a news release from the county, it is the police department's responsibility to make sure Tesla is abiding by the agreement.

It reads, "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."

Find out what's happening in Fremontfor free with the latest updates from Patch.

Tesla is Fremont's largest employer, providing jobs for some 10,000 workers at the plant and another 10,000 around California, many in offices around Fremont and Silicon Valley. Musk, incensed that the plant was shut down in the first place and then not allowed to reopen when Gov. Gavin Newsom gave the go-ahead to begin some manufacturing last week, threw a twitter tantrum over the weekend, threatening to sue Alameda County and to permanently move all operations out of California.

Tesla made good on its threat to file a lawsuit in federal court. Included in the filing, "Alameda County's power-grab not only defies the Governor's Order, but offends the federal and California constitutions."

Find out what's happening in Fremontfor free with the latest updates from Patch.

Fremont Mayor Lily Mei, concerned about local jobs and the city's tax base, said in a statement, "As the local shelter-in-place order continues without provisions for major manufacturing activity, such as Tesla, to resume, I am growing concerned about the potential implications for our regional economy. We know many essential businesses have proven they can successfully operate using strict safety and social distancing practices. I strongly believe these same practices could be possible for other manufacturing businesses, especially those that are so critical to our employment base."

Gov. Newsom was questioned about Tesla on Monday and said that manufacturing is allowed in California, but also that county health officials have the final say.

On Tuesday, President Donald Trump tweeted that the plant should be allowed to operate.

Full coronavirus coverage: Coronavirus In California: What To Know

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