Why Tesla moving to Texas is a long-term business non-factor
You’re here (NASDAQ: TSLA) recently announced that it is moving its headquarters from California to Texas. At first glance, it looks like a big deal. But for the long-term business, that’s not really a factor. Fool.com contributors Jason Hall and Nicholas Rossolillo explain why in this Motley Fool Live segment of “The 5” recorded on October 8.
Find out why Tesla is one of the top 10 stocks to buy now
Our award-winning team of analysts have spent over a decade beating the market. After all, the newsletter they’ve been running for over a decade, Motley Fool Equity Advisor, has tripled the market. *
They just revealed their top ten stock picks that investors can buy right now. You’re here is on the list – but there are nine more that you may not know.
* The portfolio advisor returns on September 17, 2021
Jason Hall: Nick, I’m going to read this one and then you’ll go and then I’ll go and then we’ll let Jeremy take it home. Elon Musk. It’s just saying what you want. No just kidding. Here we are. He moved to Texas last year. As expected, Tesla’s headquarters are set to move from Palo Alto to Austin, following a very public feud Musk has had with politicians in California.
If we think of getting through the blockades, there was a time when he defiled local city governments and refused to shut down Tesla’s manufacturing plant, he ultimately won. But generally, try to stay on the right side of your government, your political leadership, your regulators. Nonetheless, Musk did well even when the decision was announced, one of the local politicians even told Tesla, good riddance. Here we are. Here is the question. Does this news change your opinion on Tesla stock? So here is the real question. Are you bullish or bearish?
Nicolas Rossolillo: It is a dangerous subject. I think that’s a non-factor in the end. I think the Fremont, California plant is going to stay, which will continue to produce electric vehicles at least for the time being.
Room: Until they don’t need it, okay. This is the thing.
Rossolillo: Until they don’t need it, it could be a long time. They are still working on the manufacturing plant. There is that of Berlin, there is that of China. Tesla needs more manufacturing and that’s one of the things they’ve been working on for years, increasing manufacturing capacity. The presence in California is not going to go away because they need it. But yeah, I mean, finally I think it’s almost like Elon Musk, he can make questionable comments sometimes. But he is also, ultimately, a man of his word.
Room: Yep, that’s a good way to put it.
Jason hall has no position in any of the stocks mentioned. Nicolas rossolillo and its customers own Tesla shares. The Motley Fool owns shares and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.