Elon Musk Threatens to Move Tesla Out of State and Defies Orders by Restarting Factory

This past weekend very vocal chief executive Elon Musk tweeted that he would move his Tesla headquarters to Nevada or Texas.

Despite the coronavirus pandemic still going, the eccentric Musk has wanted to restart Tesla’s operations. He has been in a battle with California and Alameda County over reopening the factory.

“This is the final straw,” Musk had tweeted. “Tesla will move its HQ and future programs to Texas/Nevada immediately.”

User @ChillMichelle wrote, “From what I gather, @Tesla was told they could operate by the state of CA but Alameda County illegally overrode that decision. @elonmusk can you confirm? People are so quick to jump to conclusions but it’s good to remember there’s usually more behind the scenes.”

Musk wrote, “Yes, California approved, but an unelected county official illegally overrode. Also, all other auto companies in US are approved to resume. Only Tesla has been singled out. This is super messed up!”

According to tax accounts, if Musk does move Tesla’s headquarters to either Texas or Nevada, he would stand to save billions of dollars over time.

Both Texas and Nevada have no income tax while California has the highest income tax rate in the nation.

“If I were a betting man, I would say the odds are the taxes are a consideration,” said Daniel Morris, a certified public accountant and senior partner at Morris + D’Angelo in San Jose, California to CNBC. “How could it not be?” he asked.

“That’s why you see all these wealthy tech guys moving to the Nevada side of Lake Tahoe,” Morris said. “You just have to make sure you don’t go back to California frequently.”

On Monday Musk tweeted, “Tesla is restarting production today against Alameda County rules. I will be on the line with everyone else. If anyone is arrested, I ask that it only be me.”

The Alameda County Sheriff and Alameda County Public Health Care Services Agency said, “Today, May 11, we learned that the Tesla factory in Fremont had opened beyond Minimum Basic Operations. We have notified Tesla that they can only maintain Minimum Basic Operations until we have an approved plan that can be implemented in accordance with the local public health Order.”

The county also noted, “We are actively communicating our feedback and understand Tesla will submit a site-specific plan later today as required under the State of California guidance and checklist for manufacturing issued on May 7. We look forward to reviewing Tesla’s plan and coming to agreement on protocol and a timeline to reopen safely.”

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) and have not been compensated for this article.