By
Bena Ilyas
April 23rd, 2024
Tesla stock has gained approximately 82.86%, 12.46%, and 20.80% in the past year, YTD, and three months respectively.
Tesla Inc (NASDAQ: TSLA) stock closed yesterday trading at $793.61 per share, up 1.39%. However, today it is 1% down. On Thursday, the EV maker held its 2021 annual Tesla shareholders’ meeting, where Elon Musk announced that the company has officially relocated its headquarters from Palo Alto, California to Austin, Texas.
Although the company will continue with its production in California, Musk said the limit of growth advised the move. “To be clear we will be continuing to expand our activities in California. Our intention is to increase output from Fremont and Giga Nevada by 50%. If you go to our Fremont factory it’s jammed,” he explained adding that “It’s tough for people to afford houses, and people have to come in from far away…There’s a limit to how big you can scale in the Bay Area.”
Since the onset of the coronavirus crisis, Musk has publicly differed with the way government officials handled the whole situation. Some time last year Musk opened the factory against the state deliberations.
Additionally, Musk auctioned his Los Angeles houses and relocated to Texas. According to him, possessions kind of weighed his goals down. The tech billionaire is currently worth over $200 billion, slightly above Jeff Bezos.
The relocation from California to Texas is strategic for the company to experience future growth. Moreover, the state of Texas has enacted laws that support industries through friendly tax policies.
Furthermore, Musk is racing against time to accomplish targets set by the board regarding the company’s market capitalization. Notably, the CEO could unlock up to $20 billion should the company accomplish the set target according to InsiderScore.
As a result, it was prudent for the company to move to a more friendly environment to save on tax expenditure.
Tesla Stock amid Company’s Texas Move
According to market analytics provided by MarketWatch, Tesla stock has gained approximately 82.86%, 12.46%, and 20.80% in the past year, YTD, and three months respectively. The company has a reported market valuation of approximately $774.94 billion, and 990.02 million outstanding shares.
Notably, the electric vehicle company still holds a substantial amount of Bitcoin units in its balance sheet. Consequently, its market value and revenue are partially influenced by the Bitcoin market price besides the car sales.
During the 2021 third quarter, the company through a recent blog post announced that it produced approximately 238,000 vehicles and delivered over 240,000 vehicles. However, the company did not disclose other financial results for the third quarter and noted they will be revealed at a later date.