Market Overview

California Governor Believes Tesla Isn't Moving Out Of The State Anytime Soon

California Governor Believes Tesla Isn't Moving Out Of The State Anytime Soon

California Governor Gavin Newsom on Tuesday told CNBC that he’s not worried about Tesla Inc. (NASDAQ: TSLA) moving its electric vehicle assembly factory outside of the state anytime soon.

What Happened

“We might not be the cheapest place to do business, but we are the best place to do business,” Newsom said at the CNBC “Fast Money” show.

The California governor said he had known Tesla Chief Executive Officer Elon Musk for decades, and had "great respect and admiration for his innovative spirit."

"This state has been his partner in helping him grow his business. We're confident he and others will thrive and not just survive in the future in this state," he told CNBC, adding that he isn't "worried about Elon leaving anytime soon."

Why It Matters

Musk had threatened to move the manufacturing outside of the state when local county officials barred Tesla from restarting production at the Fremont plant.

The Alameda County officials ultimately came through, but Tesla had already restarted production at the manufacturing facility, going against the shelter-in-place orders.

The Palo Alto-based automaker has reportedly shortlisted Austin, Texas and Tulsa, Oklahoma, for its next assembly plant, as reported by CNBC and others earlier this week.

Musk had previously suggested that the facility is likely to be used to assemble its "Cybertruck," and the new factory is unlikely to replace the Fremont plant.

Price Action

Tesla shares closed 0.7% lower at $808.01 on Tuesday. The shares traded 0.4% higher at $811.10 in the after-hours session.

Image Credit: Screenshot of online stream.


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