It’s not claiming: you can’t have an automotive paint shop. It’s claiming you can’t start a new paint shop. Specifically, if you don’t have one for your car manufacturing line already, you can’t set one up. Wikipedia shows 13 pages for auto plants in CA. Most of them have the verb “was” in the opening sentence. There are two current plants: Tesla Fremont and Toyota California. Both of these plants are over 50 years old, and only one of them produces actual cars instead of parts.