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Tesla Slips as Elon Musk Moves EV-Maker’s Headquarters to Texas

Published 10/08/2021, 05:43 AM
Updated 10/08/2021, 05:45 AM
© Reuters.

© Reuters.

By Dhirendra Tripathi

Investing.com – Tesla stock (NASDAQ:TSLA) traded 0.7% lower in Friday’s premarket as the market absorbed CEO Elon Musk’s decision to move the company’s headquarters to Texas from California.

The company plans to maintain a significant presence in California and even increase output at its Fremont factory there.

Tesla even held its 2021 annual meeting of stockholders at its Gigafactory in Austin, Texas’s capital, on Thursday. The management advanced two main reasons for the move. One was the limited scope for expansion at the Fremont factory, the other being the high cost of living in California and the long distances that employees were forced to travel. 

The company had numerous run-ins with state regulators last year as it tried to keep the Fremont factory open in defiance of state decrees on social distancing. Musk, who has personally already relocated to Texas, called the state's health orders 'fascist' on an earnings call at the time. 

The electric vehicle maker thus joins a growing a list of companies which have moved out of California. Oracle (NYSE:ORCL), HPE and Toyota are among them.  

According to StreetInsider, Wedbush’s Dan Ives believes the move is Tesla's first step towards making Austin its domestic and global hub.

Texas has been a key beneficiary of the move out of California. 

“The Lone Star State is the land of opportunity and innovation,” Texas Governor Greg Abbott tweeted, welcoming Musk and his company.

 

 

 

Latest comments

Slip? thats rich...most of us have already passed 6 figures with Teslz but yiu guys keep printing whatever makes you happy.
Great state...no electric??
0.7% in pre-market is a slip? Tesla was up about 1.4% yesterday and very well could finish green again today. I doubt the market really gives a crap about Tesla leaving California. These headlines make me laugh!
Well, Texas is better, obviously.
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