California Gov. Gavin Newsom said Tuesday he’s not worried about Tesla CEO Elon Musk moving his business out of the state. “I’m not worried about Musk leaving soon,” Newsom said on CNBC. I have had many exchanges with him. We are committed to success and innovation, as well as a low-carbon, green growth economy. That’s what he’s been advocating for over the past few years, and what California has been pushing for. “
Earlier this month, Musk said on Twitter that he was ready to move Tesla’s headquarters and future operations out of California because of a dispute with Alameda County public health officials. Most of Tesla’s cars sold in the U.S. and Europe are now made in Alameda County.
Tesla is also suing Alameda County for outbreak control measures. Since March, the measures have limited Tesla’s production. At Musk’s request, Tesla is re-starting production. Since Mother’s Day weekend, Tesla’s plant in Fremont has been producing new cars and has been operating for several days in defiance of local public health requirements.
Tesla’s internal information indicates that production shifts have been fully restored, with the exception of some temporary workers and administration personnel. The former can still work remotely without having to enter the factory.
Mr Newsom said he had known Mr Musk for decades and respected and admired his innovative spirit. He believes California has been a key partner for Tesla as it grows into the world’s leading electric car maker.
“I think it’s in everyone’s interest to continue to find common ground, and that’s what we’re doing in California with Tesla,” he said. They are reopening. Production, logistics and warehousing facilities across California have reopened in the past few weeks. “
Tesla is currently working on a site for a new assembly plant. Tesla is looking at Texas and Oklahoma, according to previous media reports. Mr Musk said the next plant would be the Super factory that makes Cybertruck.
Tesla has yet to respond to Newsom’s comments.
Adam Jonas, an auto industry analyst at Morgan Stanley, said last week that he believed the share of Tesla cars produced in California would decline in the coming years. Making cars in California is “challenging” in terms of economic costs.
“There is no doubt that over time, the Fremont plant’s share of global production will decline,” he said. We think the next plant will be built in Texas. He was one of the first Wall Street analysts to be bullish on Tesla.
Newsom said he believes doing business in California is good for companies including Tesla. “We may not be the least expensive place to run, but it’s still the most appropriate place,” he says. “