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Elon personally potentially saving billions in taxes might have a lot to do with both of those ie his move and then the company's move. As an investor in the c

by muzz 5y ago

Elon personally potentially saving billions in taxes might have a lot to do with both of those ie his move and then the company's move. As an investor in the company, I am concerned about that (that this change was done to benefit one person rather than the company). https://www.houstonchronicle.com/business/article/Elon-Musk-s-move-from-California-to-Texas-could-15789041.php https://www.houstonchronicle.com/business/article/Elon-Musk-...

jillesvangurp 5y ago
I'm a shareholder as well. I can see the value add of a friendlier tax regime for the company, its employees, and indeed its CEO, less bureaucracy, and access to clean energy that Texas has to offer over the Bay are. I see it in terms of share holder value. Overpaying for staff, infrastructure, housing, facilities, etc. and dealing with local government that is too inept to address even the most basic challenges (housing, water management, roads, electricity, etc.) is not share holder value. They have big expansion plans and most of that is outside of California. So, I'd say this is a good move for them. They no longer need the Bay Area investors. That was always the main reason for being there. It was critical to them just a few years ago when they were struggling to survive. But they turned a corner and are now very profitable so they can cut loose from that safely. Tesla is now a multinational and while California is still an important market for it, they have bigger markets that they are thinking about now where they are starting to operate huge factories as well. Fremont went from being the largest Tesla factory to being one of the older and smaller ones in a few years.
- muzz 5y ago
  This is why we have markets. This news is now public, and TSLA is down today, ie investors have decided it is worth less after the news than before it.
  - jillesvangurp 5y ago
    Slightly up now. Tesla has been trending up throughout last quarter by about 150$, 50$ in the last month, and 10$ in the last week. It's now worth more than before the announcements. Not surprising considering another great quarter and the opening party for their Berlin factory last weekend. Of course most big investors would have factored in most of that news already long before any announcements would have been made.
- muzz 5y ago
  > They have big expansion plans and most of that is outside of California You might want to tell Tesla that. They just added a ton of office space in Palo Alto: https://www.mercurynews.com/2021/10/08/tesla-agrees-to-big-office-lease-in-palo-alto-despite-hq-exit https://www.mercurynews.com/2021/10/08/tesla-agrees-to-big-o...

by muzz 5y ago

jillesvangurp 5y ago

I'm a shareholder as well. I can see the value add of a friendlier tax regime for the company, its employees, and indeed its CEO, less bureaucracy, and access to clean energy that Texas has to offer over the Bay are. I see it in terms of share holder value. Overpaying for staff, infrastructure, housing, facilities, etc. and dealing with local government that is too inept to address even the most basic challenges (housing, water management, roads, electricity, etc.) is not share holder value. They have big expansion plans and most of that is outside of California. So, I'd say this is a good move for them. They no longer need the Bay Area investors. That was always the main reason for being there. It was critical to them just a few years ago when they were struggling to survive. But they turned a corner and are now very profitable so they can cut loose from that safely. Tesla is now a multinational and while California is still an important market for it, they have bigger markets that they are thinking about now where they are starting to operate huge factories as well. Fremont went from being the largest Tesla factory to being one of the older and smaller ones in a few years.

muzz 5y ago
This is why we have markets. This news is now public, and TSLA is down today, ie investors have decided it is worth less after the news than before it.
- jillesvangurp 5y ago
  Slightly up now. Tesla has been trending up throughout last quarter by about 150$, 50$ in the last month, and 10$ in the last week. It's now worth more than before the announcements. Not surprising considering another great quarter and the opening party for their Berlin factory last weekend. Of course most big investors would have factored in most of that news already long before any announcements would have been made.
muzz 5y ago
> They have big expansion plans and most of that is outside of California You might want to tell Tesla that. They just added a ton of office space in Palo Alto: https://www.mercurynews.com/2021/10/08/tesla-agrees-to-big-office-lease-in-palo-alto-despite-hq-exit https://www.mercurynews.com/2021/10/08/tesla-agrees-to-big-o...