Officials in California said they could allow Tesla to restart full operations at its car assembly plant in the United States on Monday.
They also said that the electric car company had been authorized to resume some activities before the reopening.
The announcement came after CEO Elon Musk called staff back to work in violation of the arrest warrants.
Alameda County health officials said approvals were subject to the introduction of personnel security measures and improved virus data.
"Today ... we had productive discussions with Tesla representatives about their safety and prevention plans, including some additional safety recommendations," the department said in a Twitter post on Wednesday night.
"If Tesla's prevention and control plan includes these updates and public health indicators remain stable or improve, we have agreed that Tesla can start increasing their minimal commercial operations this week in preparation for a possible reopening as soon as next week. . "
The state of California has already eased the restrictions to allow production, but Alameda County, where the Tesla factory is located, has not done so.
On Saturday, Musk said the company had sued Alameda county for ruling that the factory, located in Fremont about an hour south of San Francisco, should remain closed.
Musk, who previously described closing orders as a fascist, also vowed to move the company's headquarters out of California if the factory had not been allowed to reopen.
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Tesla didn't comment immediately on Wednesday, but in the same period that the county released its update, Musk tweeted, "Life should be lived."
Political split
Tesla opened a plant in Shanghai last year and is building another one outside Berlin, but Fremont is home to Tesla's headquarters and its main production facility.
Photos of the company's parking lot this week showed it mostly full. The plant had been closed to all essential operations except limited since March 26.
The dispute over the Tesla plant is part of the broader debate in the United States on how to reopen the economy. The discussion was divided in part on political lines, with the Republicans urging a more rapid relaxation of the restrictions.
U.S. President Donald Trump and other members of the administration had called on the California authorities to allow the company to reopen.
On Tuesday, Trump tweeted: "California should allow Tesla & Elon Musk to open the plant, NOW. It can be done quickly and safely!"
