Tesla: shares slip after Elon Musk threats

(CercleFinance.com) - Tesla shares fell on Monday after the company said that it has filed a lawsuit against Alameda County, which prohibits it from resuming operations, with CEO Elon Musk threatening to relocate the Fremont factory.


Musk said in a twitter post on Saturday that Tesla will move its headquarters and future programs to Texas/Nevada immediately, as the California plant has to remain shut given the current lockdown and health regulations due to Covid-19.

"Clearly this is Musk and Tesla putting major pressure on Alameda County to reopen its factory," analysts at Wedbush Securities commented.

However, moving away from Fremont would take at least 12 to 18 months and could add risk to the manufacturing and logistics process in the meantime, the broker warned.

"In a nutshell, this is a game of high stakes poker and Musk just showed
his cards," Wedbush added.

Investors seemed somewhat cautious about the affair, with the Tesla share down 2% in early trading on Monday.

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