Pierre Ferragu, head of the global New Street Research team, on his outlook for Tesla stock and whether it is a “crypto” company.
One of the reasons Tesla is building a factory in Texas is to cut shipping costs to the eastern United States, but it will find itself in the strange position of having to ship its vehicles overseas before selling them to Texans.
Texas is one of several states that doesn’t allow Tesla to sell cars directly to consumers and requires automakers to use third-party dealers.
Residents can currently buy Teslas online, but the transactions and vehicles must be outside of the state.
During the current session of the Texas Legislature, two bills were tabled that The Drive said would have changed the rules, but none made it to the vote.
REPORT REPORTED TESLA HAS OVER 1 MILLION RESERVATIONS FOR THE CYBERTRUCK
The “part-time” legislation is due to be postponed on May 31, and until then there is nothing on the file dealing with the issue. So it looks like Tesla will be out of luck, at least until the legislature is reunified in 2023.
Elon Musk responded to the message on Twitter, saying, “Tesla would surely appreciate changing the law so that it is not required!”
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The $ 1.1 billion factory is slated to begin production of the Model Y and Cybertruck by the end of this year, and Musk said the company plans to hire up to 10,000 people for the facility by 2022.