Tesla drops lawsuit against California county as plant reopens

May 20 (UPI) -- Tesla on Wednesday dropped a lawsuit it filed earlier this month over coronavirus-related restrictions in the California county where its factories are located.

The lawsuit asserted that Alameda County violated the due process and equal protection clauses of the 14th Amendment by barring the company from reopening one of its factories under restrictions put in place to prevent the spread of COVID-19.

Last week, the county issued a statement saying it had approved plans to reopen Tesla's Fremont, Calif., plant after reviewing its safety plans.

"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," the county said.

Tesla closed the plant in March after Gov. Gavin Newsom issued a statewide stay-at-home order but sought to resume production earlier this month as the state updated its guidance on manufacturing.

Alameda County and five other Bay Area counties kept factories closed.

The company defied the order and resumed production on May 9, while suing the county, seeking a permanent injunction to prevent enforcement of county orders.

At the time, Tesla CEO Elon Musk also tweeted that the county's decision was the "final straw" for the company's plans to produce cars in California, threatening to move its headquarters and future programs to Texas or Nevada.