“I am additionally not nervous about Elon leaving anytime quickly,” Newsom stated in an interview that aired on “Fast Money.”
“I’ve had a number of conversations with him, and we’re dedicated to the success and the innovation and the low-carbon, inexperienced development financial system that he is been selling for many years and the state of California is accelerating in.”
Musk stated earlier this month on Twitter that he was prepared to move Tesla’s headquarters and future operations out of California amid a dispute with public well being officers in Alameda County, the place the electrical automobile maker manufactures most of its vehicles for the U.S. and Europe.
Tesla additionally sued the county over its coronavirus-related enterprise restrictions, which had restricted Tesla’s manufacturing since March. At Musk’s behest, Tesla reopened for manufacturing has been making new vehicles at its Fremont manufacturing facility since Mom’s Day weekend, and was operating in defiance of local health orders for days.
As CNBC previously reported, inner Tesla communications confirmed that manufacturing shifts had totally resumed, minus some temp staff and a number of the administrative and different staff who have been nonetheless in a position to work remotely, fairly than coming in to the Fremont manufacturing facility.
Newsom, a Democrat, stated he has recognized Musk for many years and had “nice respect and admiration for his progressive spirit.” He argued that California has been a key companion to Tesla because it grew to grow to be the world’s leading player in electric vehicles.
“I believe it is in all our pursuits to proceed to seek out areas of widespread floor and that is, by the way in which, precisely what we do within the state of California with Tesla,” Newsom stated. “And so they have been accommodated, they usually started reopening as manufacturing and logistics and warehousing all throughout the state has operated and reopened in the previous couple of weeks.”
Newsom’s feedback come as Palo Alto-based Tesla scouts for a location for its new last meeting plant. CNBC reported final week that the corporate was zeroing in on Texas or Oklahoma. Musk has stated the following plant will probably be the company’s “Cybertruck” Gigafactory.
Tesla didn’t instantly reply to a request for touch upon Newsom’s remarks.
Morgan Stanley auto analyst Adam Jonas told CNBC last week that he believes the share of Tesla autos produced in California will shrink within the coming years. He stated it’s economically “difficult” to supply autos within the state.
“There isn’t any doubt in our thoughts that over time, that Fremont’s proportion of worldwide manufacturing will go down and we expect the following plant is clearly going to be in Texas,” stated Jonas, one of many earliest bullish Wall Avenue analysts on Tesla.
Newsom stated he was believes doing enterprise in California is advantageous for firms, together with Tesla. “We might not be the most affordable place to do enterprise however we’re the very best place to do enterprise,” he argued.
Shares of Tesla closed Tuesday’s session barely decrease at $808 every. The inventory is up 93% thus far this yr.
– CNBC’s Lora Kolodny contributed to this report.