Tesla Motors Inc (NASDAQ:TSLA): Is It The Best Time To Invest?
California lawmakers have made a push to get Tesla Motors Inc. Tesla Motors Inc(NASDAQ:TSLA) to build its battery factory in the state, while New Jersey is advancing a bill that would allow the electric car maker to resume direct sales through the state’s assembly.
To attract the “gigafactory” lithium-ion batter facility the Golden State would likely throw in tax credits, workforce training grants, and offer fast-track permitting and environmental reviews, the Los Angeles Times reported. Tesla builds its electric cars in Fremont, just east of San Francisco, and has its headquarters in nearby Palo Alto.
Tesla could break ground on the battery plant as early as this month, Chief Executive Officer Elon Musk has said. A second plant could follow later this year.
States in the running for the factory include Arizona, Nevada, New Mexico, and Texas, but on an earnings call with analysts in early May Musk said California could also be a contender. It wasn’t a ringing endorsement, though: he called locating the factory in the state “improbable but not impossible.”
Tesla stock hit its record high of $254.84 on March 4 as expectations about the ‘gigafactory’ hit a fever pitch. The company’s production has been constrained by limited battery availability, the company has said.
Tesla shares rose 0.8% on Friday, up 114% in the past 12 months but down 18% in the last three months.
In New Jersey, more than a month after Tesla was barred from direct sales at its two stores in the state, lawmakers in a consumer affairs committee advanced a bill that would allow electric car makers to sell directly to customers, bypassing dealerships, according to reports.
New Jersey has a law in the books requiring cars to be bought through dealerships, not directly from the auto makers themselves.
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