California should do whatever's needed to help Tesla reopen car factory -Mnuchin

California should do whatever is necessary to help electric carmaker Tesla Inc 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 leave the state, where the company is among the largest employers and manufacturers, for Texas or Nevada. "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 respond to requests for comment on Monday.

A Texas official on Monday reached out to Musk on Twitter, saying his county was available immediately to accommodate Tesla and invited the billionaire CEO for a visit. "We have a motivated, pro-business governor," said Richard Cortez, county judge of Texas' Hidalgo County. "What we no longer have is a shelter at home mandate."

Musk in response tweeted: "Note is much appreciated." County judges in Texas have a wide range of judicial and administrative duties. Hidalgo County borders Mexico, where many U.S. automakers source supplies.

Tesla shares dropped 0.6% to $814.82 in mid-afternoon. 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.