CNBC's Robert Frank breaks down the savings Elon Musk could see on his taxes if he makes good on his promise to move Tesla's headquarters.

Tesla CEO Elon Musk said on Twitter Saturday that the company is preparing to file a lawsuit against Alameda County and will move its headquarters and future operations out of California.

On Friday, Alameda County’s interim public health officer, Dr. Erica Pan, said that health orders to contain a Covid-19 outbreak in the region are still in place, and that Tesla does not have a “green light,” to resume vehicle production at its main U.S. car plant in Fremont, California, yet. She also noted, “We have been working with them, looking at some of their safety plans, and have had some recommendations.”

Tesla had wanted to start production again on Friday afternoon. The plant is where the company makes vehicles for Europe and North America. The company’s headquarters are in Palo Alto, not part of Alameda County.

Unlike other automakers, Tesla’s employees are not part of a union, so it would be easier for the company to significantly alter its operations.

Insulting Pan personally, Musk wrote on Twitter:

“Tesla is filing a lawsuit against Alameda County immediately. The unelected & ignorant ‘Interim Health Officer’ of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!”

He also claimed that: “Tesla knows far more about what needs to be done to be safe through our Tesla China factory experience than an (unelected) interim junior official in Alameda County.”

Alameda County responded with a statement saying its Health Care Services Agency and Public Health Department have been working closely with Tesla in Fremont on a safety plan. They said they aim for Tesla to reopen while protecting the health of thousands of employees who travel to and from work at the factory.

“We look forward to coming to an agreement on an appropriate safety plan very soon,” the county said without offering specific details on a timeline. “We appreciate that our residents and businesses have made tremendous sacrifices and that together we have been able to save lives and protect community health in our region. We need to continue to work together so those sacrifices don’t go to waste and that we maintain our gains.”

While Musk characterized Pan as “ignorant,” the doctor has deep experience in both public health and infectious diseases.

Among other things, Pan is a graduate of Tufts medical school, completed a residency and fellowship at UCSF and has worked at Alameda County Public Health Department since 2011 while also working as a physician and professor. She previously worked for six years as the Director of Bioterrorism and Infectious Disease Emergencies at San Francisco Public Health Department, according to her resume on LinkedIn.

Previously, the Tesla and SpaceX CEO cursed and called Covid-19 health orders “fascist,” on a Tesla earnings call. He also erroneously stated that children are “essentially immune” to Covid-19, among other controversial tweets about the novel coronavirus and governments’ efforts to deal with the pandemic.

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