Tesla Inc. (NASDAQ:TSLA) could see significant workforce changes if California Governor Gavin Newsom proceeds with excluding the company from a proposed electric vehicle consumer rebate program, according to Dan Ives, analyst at Wedbush Securities.
What Happened: "You had Jake Paul and Tyson, and now you've got Newsom and Musk—this is gonna be battle," Ives told Bloomberg in an interview. "It's a political battle, but Tesla is the only EV manufacturer actually made in California."
The analyst suggested that the proposed rebate program exclusion might accelerate job migrations from the company's Fremont facility to its Texas headquarters.
— Bloomberg TV (@BloombergTV) November 26, 2024
Dan Ives, senior equities analyst at Wedbush Securities talks about California Governor Gavin Newsom excluding Tesla's from a proposed consumer rebate program.
Musk calls the proposal "insane" pic.twitter.com/20oDaOLdb7
Wedbush maintained its Outperform rating on Tesla shares, with a $400.00 price target, despite the brewing controversy, according to Investing.com. The firm's commentary highlights the complex relationship between Tesla CEO Elon Musk and Newsom, which has been strained by previous disagreements, including COVID-related factory shutdowns and Tesla's 2021 headquarters relocation.
What Happened: Governor Newsom's proposal aims to reinstate the state's Clean Vehicle Rebate program, potentially excluding Tesla to promote market competition. This move comes in anticipation of potential federal EV tax credit eliminations.
Musk swiftly criticized the proposal, calling it "insane" and suggesting the decision could damage California's economic interests. The dispute echoes ongoing tensions between Musk and Newsom, including previous conflicts over state jobs and corporate taxation.
The potential rebate program exclusion could incentivize Tesla to accelerate job transfers from Fremont to its expanding Austin Gigafactory, a prospect Ives warned could significantly impact California's manufacturing landscape.
Price Action: Tesla stock closed at $338.23 on Tuesday, down 0.11% for the day. In after-hours trading, the stock rose 0.57. Year-to-date, Tesla's stock has surged by 36.15%, according to data from Benzinga Pro.
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Gavin Newsom Elon Musk | Photos courtesy: Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
