Elon Musk, the billionaire behind Tesla, is threatening to leave California and it may cost him $1 billion.
A number of analysts surmise that it might cost Musk at least $1 billion should decide to leave California. The electric car maker is shopping to other states as it plans to build its Cybertruck.
As of this writing, Musk is seriously considering moving its plant in Texas. Though the move will cost Tesla $1 billion, experts believe it should be able to recoup that in no time.
Where Tesla is moving
Tesla is shopping for more attractive offers from other states. As the company plans to build its new Gigafactory, states and even countries are vying to get Musk’s attention.
A Tesla Gigafactory employs thousands of people. This makes the factory an extremely effective source of local income in the state it is located. Because of this, it comes as no surprise why many states and governments are looking to convince Musk.
Aside from Texas, Musk is considers moving its plant to Nevada as well. It appears that the billionaire and some of California’s politicians are not in good terms. Musk makes his feelings known through a number of tweets.
According to experts, it will cost Tesla at least $1 billion should it decide to move its plant. This massive price tag includes building a completely new facility which should take at least a year. On top of that, Tesla will also relocate thousands of its employees.
In a recent filing with the Securities and Exchange Commission, Tesla has 48,000 employees. However, the carmaker did not disclose how many of these are working in it California plant.
California is fine
Despite facing a possible revenue stream, California politicians are at ease. A number of analysts claim that Tesla depends a lot on its Fremont facility in California. It is important to note that the Fremont facility is responsible for manufacturing Tesla’s Model S and Model X.
Analysts claim that a lot is at stake in this. However, Tesla is gambling a lot should it decide to leave California. Should the company decides to leave the state, it will cut off a major revenue stream.
In an interview, California Governor Gavin Newsom says:
“We’re committed to the success and innovation and the low-carbon, green growth economy that he’s been promoting for decades and the state of California is accelerating in.”
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