In an unexpected and incomprehensible move, Tesla’s founder and CEO is threatening to move the company to a region where the COVID-19 restrictions are more sensible and risk based. The last statement sounds contradictory in it’s depiction of incomprehensible to do something that is business and financially sound. For Tesla however, climate politics come into play, especially with California.
Over half a BILLION dollars are from regulatory credits. In 2019, Tesla’s operating income was only $69MM – you do the math. Can the company stay viable long term without these credits? Their technology and manufacturing capabilities have certainly improved over time, but it’s all been driven on the backs of taxpayers.
Nevada is also an option, given the company’s presence there with a battery facility. A move to Texas would be a bold step – image Houston welcoming in future energy tech. It would actually be good move for the state and for striking partnerships with existing energy giants (IMHO). Perhaps, we can see a hostile takeover from Big Oil of Tesla – would be nice to see some adults running the company. For example: