(Reuters) – California should do whatever is necessary to help electric carmaker Tesla Inc (TSLA.O) reopen its only U.S. vehicle factory, U.S. Treasury Secretary Steven Mnuchin said on Monday.

Health officials in Alameda County, where the factory is based in Fremont, said on Friday it must remain closed as long as local lockdown measures to curb the spread of the coronavirus remain in effect.

Tesla on Saturday sued the county, and Chief Executive Elon Musk threatened in a tweet to immediately leave the state, where the company is among the largest employers and manufacturers, for Texas or Nevada. [nL1N2CR0A9]

“California should prioritize doing whatever they need to do to solve those health issues so that he can open quickly and safely,” Mnuchin said in a CNBC interview.

Tesla’s lawsuit accused Alameda County of violating California’s constitution by defying state Governor Gavin Newsom’s orders on Thursday allowing manufacturers to reopen.

Alameda County and the governor’s office did not return requests for comment on Monday.

Tesla shares dropped 1.3% to $808 shortly after midday. They had fallen more than 3% premarket after China’s Passenger Car Association reported that the company’s Model 3 sales in April were down 64% on the month.

Reporting by Tina Bellon in New York; Editing by Richard Chang

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

China’s PPI down 2.4% in July

BEIJING — China’s producer price index (PPI), which measures costs for goods at the factory gate, fell 2.4 percent year-on-year in July, the National Bureau of Statistics said Monday. The reading narrowed from the 3-percent drop in June. Original source:…

U.S. lawmakers, Bank of America press small business agency to fix PPP lending data

WASHINGTON (Reuters) – Bank of America Inc (BAC.N), the second-largest U.S. lender, has asked the Trump administration to correct data meant to offer public accountability on the recipients of $520 billion in pandemic aid designed to preserve jobs, and a…

Wall Street jumps on coronavirus drug hopes; Fed decision awaited

(Reuters) – U.S. stocks jumped to seven-week highs on Wednesday as Gilead Sciences gave an encouraging update on a potential COVID-19 treatment and upbeat earnings from Google-parent Alphabet boosted shares of other technology and internet giants. Gilead (GILD.O) rose 5%…

Hong Kong’s richest man Li Ka-shing defends China’s plans for security law

Hong Kong (CNN Business)Hong Kong’s richest man has defended China’s plan to introduce a national security law in the semi-autonomous city, a move that has reignited mass protests and renewed questions about the future of the global business hub. Billionaire…