Why Tesla Moving to Texas Is A Non-Factor For Long Term Business

Tesla (NASDAQ: TSLA) It recently announced that it is moving its headquarters from California to Texas. On the surface, it looks like a big deal. But for long -term business, it’s not much of a factor. Fool.com contributors Jason Hall and Nicholas Rossolillo discussed why here Motley Fool Live segment from “The 5” recorded in October 8.

Jason Hall: Nick, I’ll read this one and then you’ll go and then I’ll go and then we’ll let Jeremy take it home. Elon Musk. Just say what you want. No, I’m kidding. Here we go He moved to Texas last year. As commonly expected, Tesla’s headquarters will soon move from Palo Alto to Austin, following a massive spitting Musk has inflicted on California politicians.

If we think about going through the lockdowns, there was a time when he defiled local municipal governments and refused to shut down Tesla’s manufacturing facility, he eventually won. But usually, try to stay on the good side of your government, your political leadership, your regulators. However, Musk’s way to get it right even after the decision was announced, one of the local politicians even told Tesla, good damage. Here we are Here is the question. Does this news change your opinion on Tesla stock in any way? Then here is the real question. Are you stubborn or arrogant?

Nicholas Rossolillo: This is a dangerous subject. I think it’s a non-factor at the end of the day. I think the Fremont, California factory will stay, that will continue to turn on electric vehicles somehow.

Hall: Until they don’t need it, right. That’s the thing

Rossolillo: Until they don’t need it, that can be a long time. They still work in the manufacturing factory. There’s one for Berlin, there’s one in China. Tesla needs more manufacturing and that’s one of the things they’ll be working on in the coming years, increasing manufacturing capacity. Having it in California is not lost because they need it. But yeah, I mean, later on I think it’s almost like Elon Musk, he can make some comments sometimes that don’t like it. But he was also, eventually, a man of his word.

Hall: Yeah, that’s a good way to put it.

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