Tesla vs. the Californian State Government
First off, please don't take anything I say seriously, as always this is on opinion based basis and not meant to be taken as financial advice. That being said, here are my few cents about this matter I have been actively monitoring. Elon Musk said he would return to his factory regardless state orders. He has already been talking about moving his factory over to Texas and a brexit style exit from the whole state of California. Now, regardless of what side of the political spectrum you are in, there are a few key points one needs to look into. 1) Lots of the Tesla employees are still factory workers. The whole portrayal of everyone working at Tesla being some Silicon Valley engineer is wrong. There are already people doing hard labor, working in factories and assembly lines who are financially struggling. 2) Tesla wanting to move shouldn't be indicative of operational problems given the time we are in. 3) Enforcing a business to stay closed and not pay workers while still expecting that business to meet earnings calls and expectations after seized production makes no sense. (It is like a double edged sword). 4) If Tesla closes Californian factories, a whole bunch of tech companies will follow Elon Musk's exit. I think there is common sense on how bad the state economy would be effected if Silicon Valley is no longer the valley. Not saying I agree or not with his decision. Infact, I am not much of an Elon Musk fan myself. However, from a non bias perspective one can see the decisions he made as a businessman and why they are likely best for his stock's growth. That is why I remain highly bullish of Tesla but still rate it a mid risk hold given its extreme hyper growth. I don't see its stock crashing too soon, but I think bearish trends could be upcoming or at least less of a stable positive correlation. That being said, the overall stock should be a bullish pattern given Mr. Musk seems like he is likely to crush the next earnings target and production quotas Tesla is expected to have (in my opinion).
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