This article was originally published on TipRanks.com
It is official, Tesla (TSLA) is now headquartered in Austin, Texas. According to the New York Post, the Tesla HQ relocated from Palo Alto, California, to 13101 Harold Green Road, Austin, Texas on December 1, 2021. TSLA shares fell 0.95% to close at $1,084.6 on December 2.
Tesla designs, manufactures, and sells fully electric cars, solar energy generation systems, and energy storage products.
California vs. Texas
The relocation is not expected to affect Tesla’s expansion plans in California. The EV giant is already planning to bolster its output capacity at the Fremont California plant by 50%. Nonetheless, expansion opportunities in the state look limited.
Additionally, the high cost of living has proved to be a challenge. Moreover, the state comes with some of the highest personal income taxes, which Musk has called out.
Meanwhile, Austin, Texas, is turning out to be a hot spot for tech companies, given its relatively low cost of living and home to a strong university. Tesla’s Gigafactory in Austin, which will also double up as its headquarters, is five minutes away from the nearest airport and 15 minutes from the city’s downtown. (See Top Smart Score Stocks on TipRanks)
Relocating to Texas comes on the heels of a fierce altercation between Musk and California state health officials over restrictions put in place to curb COVID-19 spread. The company was barred from opening its factory in California at the height of the pandemic, when shutdown measures were still in place.
Musk defied the lockdown orders opting to restart production at its factory in the state. State officials agreed to reopen the company’s facilities, after Musk called out the government’s restrictive measures.
Consensus among analysts is a Hold based on 12 Buys, 6 Holds, and 7 Sells. The average Tesla price target of $938.52 implies a 13.47% downside potential to current levels.