Tesla Exits California, Files Lawsuit - What’s Making Elon Musk Angry (Ep 73)

I discuss the shocking news that Elon announced today on Twitter that Tesla is moving their California HQ to Texas/Nevada.

I also discuss investing topics and questions from viewers.

Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel. Author is long TSLA, SQ and other stocks at time of original video publish date.

[George_Perez]

LOL Alameda is going to regret this big time.. as for Tesla I see this as a HUGE net positive for them over the long run, other states are far more supportive of manufacturing businesses and would bend over backwards to do whatever Tesla wants to keep them happy 🐐🔥🚀🤑

[TomDenbo]

Congratulations to Elon on leaving CA. CA and Alameda County have become business lethal. Hopefully more companies will be inspired leave. Glad I left years ago.

[vvattup]

Surprised it lasted this long frankly. I relocated from Oakland to Austin 12 years ago. Never looked back. My predictions: Tesla -> Austin + SpaceX -> Houston (Space Center)

[harrychu]

Too much risk being in a jurisdiction that is unsupportive of Tesla's business. Cut bait and move to where the jobs and taxes are appreciated.

[joesmackunstable]

now Elon selling his houses makes way more sense

[sbirs]

Governor Gavin Newsom spoke of the realization that the CA state finances are in a sorry state of affairs just yesterday, May 8. He also stated on Thursday that CA would now allow manufacturing to restart. However, Tesla in Alameda County (city of Fremont) cannot reopen because that interim health officer has imposed the lockdown order through May 31. What does Elon Musk have to say about it? File a lawsuit against Alameda County, positively state that Tesla HQ is moving to Nevada and/or Texas AND leaving the fate of the Tesla Factory in the hands of Alameda County officials to either reopen immediately or it will cease all activity and relocate to Nevada/Texas. Not only does that factory employ over 10, 000 people, many suppliers are co-located with the factory employing perhaps as many employees. If CA has a budget shortfall, then what's going to happen when all these rather well-paid employees suddenly have no income to tax, no income to spend and pay sales tax, no ability to pay their mortgage and impound (property taxes), etc and so on and on. The chokehold being applied is unwarranted as Tesla has already reopened its Shanghai factory after a COVID-19 run over there (no reported deaths of any workers there either.) Frankly this DIRECT experience of Tesla is unique in this regard whereas the lack of experience of an interim health officer carries little legitimacy IMHO.

[FlexRogers]

Alameda County (and that one health official) just made an irreversible mistake that is going to cost CA trillions in the future. RIP

[leapdrive]

Elon should use this time to move their factory elsewhere.

[Nessal]

This is what politicians do. They try to flex their ego and no one ever calls them out on it. This time it didn't work.

[tonymcguckin]

The market might give the stock a price bump because of the lower cost of doing business and cost of living in those states vs California.

Selling the houses is a nice move. He has been thinking about this for a while. This was the final straw.

[panomano]

I totally agree with Elon, We need to move towards slowly ramping up in a safe manner as we were going to do.
Moving is best over time because this will not be the last time we have another Pandemic, since we are going through these about every 15-20 yrs.. SARS, Ebola

[youropinionmatter]

Totally agree that he planned it. He needs an excuse to do. And Now he has one. This guy is super smart.

[sagarpatel]

Alameda county have lost the Warriors, Raiders, would have lost the A’s if they had a choice and now Tesla

[colinkelley]

One other thing with Texas that may have influenced Elon's thinking. Texas was the best, most logical, and most impressive state in how they dealt with the virus. They are business oriented.

[kokokosh]

Can't believe he waited this long.

[JanBruunAndersen]

Excellent summary of what is, and might be, going on. Also excellent use of the tablet & pen for showing info.

[lukang]

Bye bye California. The climate and topography are great but the politicians and ideology there suck. Texas would be great for TSLA

[gigglehertz]

My guess is he sells CA houses to fund purchase of stock (exercise incentive stock options). He knows Giga TX will be next level and wants to be close to it and Starship development. GF1 is cramped and convoluted and not ideal for any level of growth. He's tired of SoCal traffic as well. Remember when Y was coming and they wouldn't say for sure WHERE it was going to be produced? Plus trash talking CA and moving to TX is the ideal pitch to red state truck drivers. He will be a conservative hero. TX might even change their stealership restrictions to reward "patriot" Musk. How could the state of TX not allow Tesla to sell cars in the state of TX if their legal corporate HQ is there and truck factory is there? I see it as a slam dunk to amending the law.

[bigding]

Makes me sad to hear that he might be leaving California. I always knew the odds were pretty low that California could sustain a car company. If the stock goes down on this news, it will be short-lived. The market generally has been buying the dips on Tesla lately. Elon always finds a way. The market is betting on the jockey.

[astroboom]

This "live" formula is nice, you are putting out much more videos, this is great