Moving Tesla HQ to Texas is mostly posturing

Just to be clear, we will be continuing to expand our activities in California….This is not a matter of sort of Tesla leaving California.

Elon Musk

This I completely agree. It’s hard to just leave California with so many employees here and they have their lives rooted to California. Their kids have schools in California and moving means restarting for some employees. This reminded me of Oracle moving their HQ to Austin, Texas. It really don’t matter as their Redwood City Campus is still hiring. Don’t underestimate network effects.

From the outside, the announcement tended to be viewed in the context of Musk’s repeated grousing about California business regulation — especially attempts by local officials in Alameda County to force Tesla’s Fremont auto plant to comply with anti-pandemic measures last year.

That wasn’t the case from the inside. The lone rationale Musk gave during Tesla’s annual meeting Thursday was different. There, he cited the high cost of housing and the long commutes burdening Tesla employees. In any event, the headquarters relocation wasn’t entirely news: Musk first announced his intention to move Tesla’s headquarters out of California in May 2020, in the teeth of his fight with Alameda County.

At that time he also threatened to shut down the Fremont plant, “dependen[t] on how Tesla is treated in the future.”In the fullness of time, the threat to Fremont turned out to be a bluff. At the annual meeting Thursday, he stated that Tesla’s “intention is to actually increase output from Fremont,” along with that of the company’s battery plant in Nevada, by 50%.

LA Times

Tesla sold record 56,006 China-made vehicles

U.S. electric vehicle (EV) maker Tesla Inc (TSLA.O) sold 56,006 China-made vehicles in September, the highest since it started production in Shanghai about two years ago, data from the China Passenger Car Association (CPCA) showed on Tuesday.

The September sales included 3,853 that were exported, the data showed.

Tesla, which is making Model 3 sedans and Model Y sport-utility vehicles in Shanghai, sold 44,264 China-made vehicles in August, including 31,379 that were exported.

Reuters

What an amazing run. Telsa sold a record number of made in China vehicles.

Food delivery giant, Meituan, fined

China fined the food-delivery giant Meituan $530 million for antitrust violations on Friday, the second major penalty this year in Beijing’s efforts to bring the country’s big internet companies to heel.

The government’s campaign has been blessed by the highest levels of the Communist Party leadership. It has involved a wide cast of regulatory agencies and policymaking bodies. And it has wiped out hundreds of billions of dollars in wealth for shareholders of some of China’s — and the world’s — most successful tech businesses.

Investors are still waiting to learn the fate of another of China’s most-valuable internet companies, the ride-hailing giant Didi (NYSE: DIDI). Days after Didi listed its shares on the New York Stock Exchange in late June, Chinese regulators ordered the company to stop signing up new users and pulled its apps from mobile stores, citing cybersecurity and privacy concerns.

New York Times

China slapping $530 million for antitrust violation is scary. It’s making me nervous about owning Chinese stocks. Meituan, likely Didi, is not in the US stock market.