What Does He Know We Don't? California Governor Gavin Newsom Says He Isn't Worried About Telsa Packing Up And Leaving

What Does He Know We Don't? California Governor Gavin Newsom Says He Isn't Worried About Telsa Packing Up And Leaving

California Gov. Gavin Newsom told CNBC on Tuesday that he is “not worried” about Tesla CEO Elon Musk moving the company’s operations out of the state. 

“I’m also not worried about Elon leaving anytime soon,” Newsom said in an interview that aired on “Fast Money.” 

“I’ve had a lot of conversations with him, and we’re committed to the success and the innovation and the low-carbon, green growth economy that he’s been promoting for decades and the state of California is accelerating in.” 


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atc98092atc98092 - 5/21/2020 12:17:57 PM
+3 Boost
Of course he says that. What else can he say, publicly?


mre30mre30 - 5/21/2020 3:56:49 PM
+3 Boost
He's speaking from experience...its nigh-impossible to move a plant if the capacity is desperately needed short term. If a company basically has one plant (NUMMI Fremont - former GM and Toyota plant) to build its cars. It would need to build a new production line elsewhere and have them run in parallel until the new plant is up to speed. Auto supply chains are very complex - if Musk wants to move out of Fremont, it would take him 4 years to do so if he started today. Plus Tesla owns the plant (which I think is in a swamp) and would have to sell it (and get permission from California for any zoning changes to do so).

The whole reason Musk bought the NUUMMI plant and may have been given generous incentives to locate there.

Some history..."NUMMI was established at the former General Motors Fremont Assembly site that closed in 1982; it had been a GM plant since 1962. GM and Toyota reopened the factory as a joint venture in 1984 to manufacture vehicles to be sold under both brands. Up to May 2010, NUMMI built an average of 6000 vehicles a week, or nearly eight million cars and trucks since opening in 1984. In 1997, NUMMI produced 357,809 cars and trucks, peaking at 428,633 units in 2006.

GM pulled out of the venture in June 2009 due to its bankruptcy, and several months later Toyota announced plans to pull out by March 2010. The closure was opposed by city officials, including Fremont Mayor Bob Wasserman, who lobbied to keep NUMMI in the city. However, at 9:40am on April 1, 2010, the plant produced its last car, a red Toyota Corolla S believed to be destined for a museum in Japan.

On May 20, 2010, it was announced that Tesla Motors had purchased part of the NUMMI plant and renamed it Tesla Factory, producing the Tesla Model S. By 2016, the plant had 6,000 employees, with plans for more."

Cliff Notes version - the Fremont plant is not going anywhere for the near term. Tesla is staying but it might build another plant elsewhere if 'free money' is thrown at Tesla. Possible, but unlikely. Gavin Newsome is probably correct to be a little smug about it.



mre30mre30 - 5/21/2020 4:03:11 PM
+1 Boost
Further - if Musk was really serious about building a vehicle manufacturing facility - he would most likely do so in either Texas (GM-Arlington and Toyota in San Antonio), Alabama, Mississippi, or Tennessee where auto supply chains are already established. The logistics support for a premium vehicle is much better in the Alabama/Mississippi corridor.

If he didn't talk to those other states, he is not serious and this is just a whiny publicity stunt.


MDarringerMDarringer - 5/21/2020 4:50:01 PM
-1 Boost
The problem with NUMMI is that it is an ancient facility that is a compromise for Tesla and not designed to build Teslas. Tesla--in building plants elsewhere--has creating capacity that would allow them to walk away from NUMMI is a heartbeat.


MDarringerMDarringer - 5/21/2020 4:48:13 PM
-1 Boost
Gavin Newsom is a stupid-fuck NancyBoy.

Elon needs to screw him over royally then run for governor in 2022 and beat Newsom in a landslide.


PUGPROUDPUGPROUD - 5/21/2020 4:54:18 PM
+2 Boost
Head in the sand liberal. This attitude has already chased many businesses out of California and stopped others from going there. Actions have consequences.


valhallakeyvalhallakey - 5/21/2020 9:47:05 PM
+3 Boost
California has some of the best, brightest and most innovative people from around the world. California's GDP is almost double that of Texas. 0f course TX gets a lot of that Federal tax money California provides... helps mask the ineptitude of Red State Republicans when all those Federal tax dollars flow from Blue to Red.


MDarringerMDarringer - 5/22/2020 12:23:02 PM
+3 Boost
"California's GDP is almost double that of Texas." But because our welfare expenditure is more than the next five most generous states COMBINED we are perpetually on the verge of bankruptcy.

Democrats love bankruptcy.




MDarringerMDarringer - 5/22/2020 12:24:30 PM
+1 Boost
Trump needs to say to Nancy Pelosi: "Bitch, if you want your nephew-in-law's career not to be forever dead, you need to get him in check and back the fuck off."


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