Why You Shouldn't Worry If Texas and Tesla Can't Get Along
The serial soap opera that is Elon Musk and Tesla (NASDAQ: TSLA) took another turn last December, when the billionaire entrepreneur thumbed his nose at California and said he was moving Tesla's headquarters to the huge factory he was building in Texas. Tesla said the move would create 5,000 Texas jobs at an average annual salary of $47,000. Tesla, on the other hand, would be freed from costly California regulation and would receive tax breaks worth up to $64.7 million.
That seemed like a good deal for both parties, but rather than saying thanks, Texas has recently excluded Tesla from a rebate plan that rewards buyers of electric vehicles (EVs), and it continues to make it difficult for Texans to buy Teslas. Here's why investors shouldn't get too alarmed about this apparently soured relationship.
The Texas EV rebate program awards a rebate of $2,500 to the buyers of EVs produced by every major car manufacturer, except Tesla. A total of 142 different models are eligible for the rebate, but not the world's best-selling EVs: Tesla's.
Source Fool.com
