Tesla has dropped its lawsuit against Alameda County over a shelter-in-place order that temporarily hampered operations at the carmaker's main factory in Fremont, Calif.
Tesla filed the lawsuit earlier this month, and alleged that Alameda County's mandate that Tesla's factory remain closed was "unconstitutional" and contrary to California Gov. Gavin Newsom's guidance for re-opening some business activity.
Tesla CEO Elon Musk also threatened in a tweet to "immediately" relocate Tesla's headquarters to Nevada or Texas.
Tesla didn't give a specific reason for voluntarily dismissing the lawsuit, but earlier reached a deal with Alameda County to resume operations at the factory with certain safety precautions.
Earlier this week, Gov. Newsom said that he does not expect Tesla to leave California "anytime soon."
“I’ve had a lot of conversations with him [Musk]," Newsom said in an interview with CNBC's Fast Money. "We’re committed to the success and the innovation and the low-carbon, green growth economy that he’s been promoting for decades and the state of California is accelerating in.”
The public dispute between Tesla and California officials has been simmer since mid-March, when a Bay Area shelter-in-place order stopped operations at Tesla and a multitude of other businesses deemed non-essential.
On a recent earnings call, Musk complained that the extended factory closure was a "serious risk" to Tesla's financial performance, and called the shutdown orders "fascist."
The company originally sought to deliver 500,000 vehicles this year, and has not yet updated that guidance. Analysts view that figure as out of reach, owing to the supply and demand disruptions triggered by the global pandemic.
Tesla shares are up 90% year to date.