Fewer Jobs Still For California

Right on the heels of the movement of the Toyota plant from Freemont, California to Plano, Texas with its thousands of jobs, comes a potential for California’s Tesla’s lithium-ion battery plant to be built…well, somewhere.

The Tesla automobile has had its highs and lows — right now it is in a low — but its founder. Musk is a multi-billionaire so the automobile has potential to weather numerous setbacks.

The real news is its battery production, which it intends to start in the next several months in the US, with two plants employing about 6,500. Obviously if it intends to break ground in several months, it will require full cooperation of state government, and a clear path to build without regulatory interference.

The so-called “Gigafactory” will likely be built in two sites, one in each of two states…Nevada, Arizona, New Mexico and/or Texas.

California, once out of the running is back in only because Governor Jerry Brown is on Musk’s side — but Jerry has zero control over environmental groups, so Musk says, “It’s sort of still improbable, but it is back in the running,”

On May 6, California was out. On May 8, it was back in — but improbable. Certainly, California cannot compete for the first plant — and when a second is built, competition between the two plants will take place for future contracts — meaning that even if California wins one of the plants, future lawsuits on the environment will simply mean the plant gets no continuing contracts!

I suspect it is simply a façade to make California feel good, but truly, do you think YOU would build a plant in California? Even if there is some recognition that the regulatory climate must change, now that Toyota has fled to Texas, it must be obvious that jobs are NOT a priority for Democrats in general and Sacramento Democrats in particular.

Even liberal Apple Computer is doing its expansion in Austin, Texas.

We are talking not just jobs, but construction — about &5 billion in construction costs.

Musk, who is a South-African born, Canadian-American also owns SpaceX, which is a strong contender to win the eventual contract to deliver men to the Space Station, which, in this era of strained relations with Russia, will be a blessing.

Sacramento is slow to awaken to the exit of California jobs.

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