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Ben asked in Business & FinanceCorporations · 3 weeks ago

How much money would Tesla have lost if production was moved from California to Texas?

Update:

No politics please.

2 Answers

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  • not
    Lv 7
    3 weeks ago

    Politics is neck deep in this subject, can't pretend otherwise.

    Califonia is planing to force people to buy your product, you don't want to miss out on that guaranteed income. Smart people use legislation to create a market for their product time and time again. In this case I don't believe that manipulation happened. As I understood Tesla was interested in expanding its product to more people, more of the country; that's smart business. 

    Pros and cons galore. Which move is more profitable?Perhaps expanding means charging stations everywhere, perhaps not expanding but instead focusing on the CA forced market means as a Californian I will have to rent a gasoline car to leave the state. There is a lot for a successful business to consider. Will the rest of the country be detached from and perhaps then resistant? In the end I think letting Tesla create a product and market it appropriately so that people want it would be the best option. Politicians only think they know better than someone as successful as Elon Musk. 

  • 3 weeks ago

    Why would they have lost money?

    They could make a gazillion selling their land in Fremont, TX has cheaper labor, the overall cost of doing business is cheaper in TX, it's more centrally located for better distribution channels.

    I'm sure Tesla has done the analysis of moving.  Most likely the only reason they stay is because they have already invested in the Fremont factory. 

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