This article will speak about news regarding Tesla and Elon Musk’s decision to move to Texas.
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Elon Musk – Elon Musk is one of the most famous businessmen of this generation. He gained a significant reputation as a businessperson, industrial designer, engineer, and CEO.
Almost every person in this world is familiar with Elon Musk, if not, they must have heard about him after recently he became the richest man in the world.
That’s right, Elon Musk is now officially the wealthiest person in the world. This became possible after his electric vehicle manufacturing company ‘Tesla’ has a surge in the stock price.
Right now, Elon Musk has a net worth of around $203 billion as per the stats obtained by Investopedia, while the ownership stake of Tesla alone makes up to an amount of $145 billion.
However, Forbes’ recent update states that he is now the second-richest person in the world with a net worth of $184 billion.
As both of the above-mentioned websites post credible information, we aren’t clear regarding which among those two is true. That’s why we have presented you with the stats from both these websites.
Musk happens to be the person who rose fast to the list of richest people in the world, especially while Trump was the president. Let us take a look at the details related to his assets, companies, etc.
Musk was the co-founder of a web software company named ‘Zip2’, which was later attained by Compaq for an amount of $307 million in the year 1999.
After that, Musk founded an online bank called ‘X.com’, which merged with Confinity. In the previous year, Confinity launched PayPal that was later purchased by eBay for $1.5 billion in the year 2002.
In the year 2002 itself, Musk started a company called ‘SpaceX’, which is a rockets & spacecraft manufacturing/launching company. Musk is the CEO and the lead designer of SpaceX.
In the year 2004, he became the chairman of the board of directors of ‘Tesla’ by contributing a hefty sum to that company. By then, the first 3 board members of Tesla raised funds worth $7.5 million. Later, Musk became the product architect and CEO of Tesla in the year 2008.
In the year 2006, Musk created ‘SolarCity’, which is now a subsidiary of Tesla. This company specializes in services and tech-related to Solar Energy.
In the year 2015, Musk co-founded a company called ‘OpenAI’, which is a non-profit company that concentrates on research related to friendly artificial intelligence.
After that, in 2016, Elon Musk co-founded a neurotechnology company concentrating on the development of brain-computer interfaces, known as ‘Neuralink’.
He founded Boring Company, which is an infrastructure and tunnel construction company centralizing in tunnels specially designed for electric vehicles.
Additionally, he also plans on certain development projects such as ‘Hyperloop’ (superfast train system) and sending people to Mars.
Tesla – Tesla, Inc. is an electric vehicle manufacturing and clean-energy company based in Palo Alto, California. Some of the major products and services offered by this company are Electric cars, battery energy storage, solar panels, etc.
As for the stock-related information of Tesla, it is traded as:
- NASDAQ: TSLA
- FWB: TL0
- Component of NASDAQ-100
- Component of S&P 500
In the year 2019, Tesla became the world’s best-selling plug-in and battery electric passenger car manufacturer while having 17% plug-in cars and 23% battery-electric cars.
In 2020, Tesla had 499,550 global vehicle sales and surpassed the mark of 1 million cars manufactured. The sale of 499,550 units is a significant 35.8% increase when compared to the sales of Tesla in the previous year.
It can be considered an achievement of Tesla as the sales were increased in 2020 that was a very drastic year for most other companies due to the outbreak of the deadly coronavirus.
Tesla manufactured 4 models so far, which are ‘Model S’, ‘Model 3’, ‘Model X’, and ‘Model Y’. However, the first-generation Tesla Roadster has been discontinued.
Tesla’s Model 3 has been named as the world’s best-selling plug-in car with more than 500,000 cars delivered so far.
There are some important aspects regarding Tesla, which are worth mentioning. Especially, the things that happened in 2021 should be mentioned as they are some of the crucial aspects so far.
Elon Musk has promised quite a lot of things for 2021 and because of the rapid growth of the company Tesla in 2020, Musk can be able to establish everything he said.
Let us discuss some of Musk’s plans for Tesla this year. However, it should be taken into consideration that some of these plans were made for the previous year.
Tesla Cybertruck – Cybertruck happens to be Tesla’s major project of Tesla in the year 2021. Having been initiated and revealed in the year 2019. The unique styled Cybertruck is supposed to enter into production this year.
It is expected that the first variant to be released is the tri-motor variant, which is the most powerful variant of Cybertruck. Later, in 2022, the affordable single motor version will enter the production line.
Tesla hasn’t announced anything that states that the production of this vehicle would be delayed. However, it won’t be a wonder if the Cybertruck doesn’t hit the roads this year (especially in sufficient quantities).
Tesla Semi – Tesla Semi is a Semi-Truck that should have been entered the production line of Tesla two years ago. It has been one of the major projects of Tesla that made most people wait, especially corporate giants.
Big corporate companies want to make use of this vehicle for the transport of their goods while reducing emissions. So far, there have been very few on-road tests and sightings of this vehicle.
The exact reason for the holdup of this vehicle is unknown, yet, with the increase in the market capital and opening of new production sites, Tesla might become successful in launching this vehicle in 2021.
Tesla Roadster – Out of the three confirmed vehicles of Tesla, Roadster happens to be one. Nonetheless, the chances are less likely for the Roadster to enter production this year.
Despite that, as we have discussed already, Tesla has a lot of money. And at this point, Tesla can do wonders that nobody might have expected they could.
In the past, Elon Musk announced that this electric sports car will come into the production line as soon as the Texas factory is started.
Because Cybertruck and Semi are the most prioritized products of Tesla, there are some possible chances that the Roadster might not hit the roads in 2021.
Even if it rolls out, possible chances are that it would be manufactured in the California Assembly Plant rather than the new Texas plant.
A German Gigafactory – Almost everyone is familiar with the fact that there will be a Gigafactory in Texas, but in addition to that, there will also be a Gigafactory near Berlin, Germany.
By completing this Gigafactory, Tesla will establish its presence in North America, Asia, and Europe. After the completion of this plant, Tesla will be able to meet the demand for electric cars locally.
There is a possibility for having a cheap $25,000 Tesla – Apart from the three main models that are anticipated to be launched in the year 2021, there is a possibility for us to see a $25,000 affordable Tesla as well.
Musk announced this idea on Battery Day; however, this is not the first time that Musk brought up the idea of an affordable model. We think that this model might possibly be seen before the end of 2021.
Even though Tesla is known for the delay of its models/projects, it has been surprising the people by revealing the models prior to the actual production starts.
Keeping that scenario in mind, we can anticipate that Tesla would tempt the fans by revealing the first look of this car in 2021.
Apart from that, Musk also talked about an electric hatchback (which might be similar to the Model 3) to be launched in the European markets. There is even a possibility that this hatchback model might actually be the much anticipated and affordable model that can be launched within a price range of $25,000.
Opening more markets (concentrating India) – Tesla is getting ready to spread its empire by taking part in almost all the major car markets in the world. India also happens to one of those locations as for that matter.
Tesla has a huge fan base in India, and these people have been waiting for a very long time for Tesla to provide cars in India.
This wait is over as Tesla as the launch of Tesla has been officially confirmed by Nitin Gadkari, who is the Indian Minister of Road Transport and Highways. It has been announced that Tesla will be likely to get launched in India as soon as during the first quarter of 2021.
Before thinking that this would be highly beneficial to tesla, there are some very important matters that are to be taken into consideration.
Even though India is the third-largest economy in Asia, the people living there are mostly middle-class people. Such people might be able to afford a car like Tesla or any car for that matter.
According to Bloomberg Energy Finance, neighboring China’s annual car sales had 5% of electric vehicles, whereas, in India, the annual EV car sales in India are less than 1%.
Keeping these types of aspects in mind, Tesla might not be able to see a lot of profit in the Indian markets. However, we can’t just decide the future and have to stay tuned to know what will happen.
As most sources claim, Tesla model 3 would be the first model of Tesla to be launched in India. Some credible sources even claim that Tesla is ready to set its foot in Nepal before coming on to the Indian markets.
Tesla in China – Tesla opened the first Gigafactory outside the United States in Shanghai, China. By the end of the year 2020, Tesla demonstrated its capacity by beating all other rivals in the world’s biggest EV market (China).
In the first 11 months of 2020, Tesla was able to manage to sell 111,600 vehicles in China. Meanwhile, other rival EV makers such as Nio, LiAuto, Xpeng, etc., weren’t even able to make sales of more than 40,000.
Not only that, Tesla opened the world’s largest supercharger station in China with a power capacity of 72 stalls having 120 kW each.
Along with that, On January 18, 2021, Tesla has officially started the sales of Tesla Model Y (made in China) in the Chinese market. Before that, the Model 3 was the only car that was available in China.
However, with the growing number of rival companies, Tesla might have to face a little competition in China. Especially when companies like NIO are coming up with their new products such as new sedan, replaceable battery, etc., that could have huge sales.
More service centers – In contrast to general automakers, Tesla was not able to keep up with the service network resulting in a little bit of a drawback. In 2021, Tesla has made its resolutions by determining to open a service center every week (around the year).
This can lead to an increase in customer satisfaction, specifically in the areas where owners have to face problems due to lack of service centers.
Elon Musk moves to Texas:
Texas Gigafactory – A new Gigafactory is being built in Austin, Texas, which is known to concentrate on the Tesla Cybertruck.
Currently, this Gigafactory is under construction and will be ready to manufacture the Cybertruck and other models as soon as in May.
This Austin Gigafactory is a very special plant for Tesla. It is considered special as it has been the first plant in the United States, which is built from scratch. California plant, on the other hand, used to a joint venture of General Motors and Toyota.
Along with that, the Austin Gigafactory is expected to meet the demand in the Eastern part of the US for the production of the Model Y crossover SUV. As of now, every single vehicle of Tesla in the United States has been built in the plant located in Fremont, California.
By building this new Gigafactory in Austin, some of the burdens that are on the California plant might be diverted.
Not only the Cybertruck, but Tesla also announced previously that this Austin-based Gigafactory will also have an active part in manufacturing Tesla Semi. This new Gigafactory in Austin, Texas, would be a huge factor for the growth of Tesla in the United States.
Elon Musk sold his properties – Musk declared in May 2020 saying that he will sell all his real estate properties and have a clean real estate portfolio as a new year’s resolution.
According to the tweet he made, he said that he will start the new year by selling almost all of his physical possessions and won’t be owning a house.
By January 2021, he was able to keep up his word by selling the remaining 4 houses he had in the Bel-Air cul-de-sac.
According to the information provided by ‘The Los Angeles Times’ and ‘Variety’, The remaining four houses of Musk were sold for a whopping amount of $40.9 million.
After this transaction, his California state real estate sales became 8, which he listed for an amount of $157.9 million in the beginning.
Based on the information obtained by us, Musk sold his first property $29.72 million to a Chinese billionaire named ‘William Ding’ in June 2020. This is a 9.309 sq ft mansion consisting of 6 bedrooms and 7 bathrooms.
Back in 2016, Elon Musk purchased this property for an amount of $24.4 million (approximately), which is $5.5 million lower than the price he sold it.
The second property of Musk was sold in October 2020, for an amount of $7 million. This house happens to be an old house of a late actor named Gene Wilder. However, this property went back into the Wilder’s family as his nephew is the one who bought it.
Musk tweeted in May 2020 saying that there was a condition for this property as it is one of Gene Wilder’s old houses. He said that this house should not be torn down or lose any of its soul.
By selling this property, Musk had a profit of around $375,000 on the basis of what he paid for it while purchasing it.
Another property sold by Musk is a little bit less expensive compared to his other properties. This property was sold for $4.43 million and the deals on these three houses were closed a bit before Christmas arrived.
Elon Musk moving to Texas – In December 2020, Elon Musk said that he will move to Texas because he wanted to concentrate more on the new plant as well as the SpaceX venture in Lone Star state.
When most people heard that Elon Musk was moving to Texas, two questions suddenly popped into their minds. Why is moving there, and Where would he live there.
To begin with, we will answer your first question about why Elon Musk actually moved to Texas. Well, most people might haven’t been familiar with this issue, but Musk moved to Texas mainly because he got angry with California.
Musk had to shut his factory down in California due to the lockdowns imposed by the state as a measure against Covid-19.
In an interview with Matt Murray (editor in chief of Wall Street Journal), Musk stated that the two major projects in his life as of now are the Starship Development and Gigafactory in Texas.
He also said indirectly that he was wasting his valuable time by being in California, keeping the shutdown of his factory during the lockdown in mind.
By moving to Texas, Musk has been offered some privileges. For example, he doesn’t need to pay the Personal Income tax or Capital Gains tax. While he was in California, the situation was different as California is known for having some of the highest state-level tax rates in the United States. Another reason as described by Musk for moving to Texas is that Texas has some of the most profitable innovator-friendly policies.
Even though Musk moved to Texas, his other major endeavors will still continue to operate within California. Based on a report provided by New York Times, Musk found a nice place to reside in Austin, Texas.
Moreover, there have been some reports that Musk even threatened the officials of California that he would shift the headquarters of his companies to Nevada or Texas, which can be seen to become true in the nearby future.
However, as of now, the current headquarters still remain in Tesla. Musk will now be responsible for the development of the state because he is the wealthiest individual.
Nonetheless, there is also a possibility for California to have a somewhat negative impact because of the wealthiest individual in the world not being pleased with them. If the headquarters get moved to Texas, there will definitely be a negative impact on the economy of the Golden State.
Musk also filed the respective paperwork for moving his personal foundation to Texas from California (where it currently exists).
Along with that, it still remains unclear whether Musk’s Girlfriend Grimes and his son X Æ A-Xii have also moved to Texas along with Mr. Musk.
Location of his new endeavors – Tesla and SpaceX will begin the operations in Texas. Yet, most people are unfamiliar with the location of these companies in Texas.
- The new Tesla factory would be built outside of Austin and is expected to be completed by the second quarter of 2021.
- SpaceX will have a new launch site in Cameron County and the details about when it will be ready are unknown.
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