Morgan-Stanley Expert Predicts Tesla Factory in Texas
Those who keep up with business trends are cognizant that Right to Work states enjoy many benefits: more jobs, more factories, higher standard of living, more job security, lower taxes. An expert gvies 6 reasons predicting Tesla will open a factory in Right to Work Texas. Shanthi Rexaline has the story on finance.yahoo.com.
â€œTesla Inc (NASDAQ: TSLA) shares have recovered from their coronavirus meltdown, courtesy of a strong quarterly report. On the earnings call, CEO Elon Musk suggested the company’s next Gigafactory could be announced as soon as next month and that it would be in the U.S.
An analyst at Morgan Stanley strongly believes Texas is the most likely location.
Adam Jonas has an Equal Weight rating on Tesla with a $680 price target.
Tesla’s vehicle factory in the U.S. is in Fremont, California; no other OEMs have vehicle assembly in the Golden State, he said.
. . . Texas ranks No. 4 in the U.S. among auto manufacturing jobs, Jonas said, citing Labor Department statistics.
. . . Jonas is of the view that Tesla might prefer to operate in states where labor union representation is less prevalent. Texas, being a right-to-work state with affordable labor costs, fits the bill, the analyst said.
The cost of doing business is significantly lower than Tesla’s current production in California, he said. â€œ
Right to Work supporters know, in almost every study done involving economic development, Right to Work Texas always rates near the top of the list, while forced-dues California lingers near the bottom
â€œSpaceX/Starship, another Elon Musk operation, is located in Boca Chica, Texas.
At last check Tuesday, Tesla shares were rising 2.45% to $779.88.â€