Tesla released a new blog post defending its impact on California and says that it now employs 47,000 people in the state.
California has been critical to Tesla’s success over the last 20 years.
The state has helped Tesla in its time of need and its strong climate initiatives and EV incentives have made it the biggest market for electric vehicles in the US and, therefore, Tesla’s biggest market.
However, the love story between Tesla and California ended somewhat abruptly in 2020. Early measures to curb the spread of Covid 19 resulted in Tesla having to close its Fremont factory, which angered CEO Elon Musk to the point of threatening to move Tesla from California.
The automaker always maintained that it is still heavily investing in California and walked back threats made by Musk to even move Fremont factory at one point.
But the behavior of Musk over the last year resulted in Tesla’s popularity in what is still its most important US market plummeting.
Since Tesla’s move to Texas, the CEO has made it clear that he is now Republican and even encouraged people to vote Republican during the last election – a rare thing for a tech CEO to officially take a side like that.
This didn’t help Tesla’s case in blue states, like California. On top of it, Musk called the Democratic party “the party of hate” and he regularly makes negative comments on the left on his popular Twitter page.
In an apparent damage control effort, Tesla released a rare blog post defending its impact on the state of California.
In the post, the company listed all its primary operations in the state:
Tesla’s footprint in California is made up of Megapack production and vehicle castings in Lathrop, hardware and software engineering in Palo Alto, vehicle and battery manufacturing in Fremont, battery development and testing in San Diego and vehicle design in Hawthorne.
Tesla listed some of its economic impacts in the state of California based on IHS research:
Tesla-supported California jobs (direct and indirect) exceeded 80,000 in 2021. Over 43,000 of these stemmed from $1.6 billion in expenditures with California suppliers.
For every 100 direct Tesla jobs, 50 more were supported in the supply chain and 68 by follow-on consumer activity.
From 2018 to 2021, Tesla paid an average of $1 billion in federal, state and local taxes annually, with approximately $400 million going toward state and local taxes in 2021.
Tesla’s average contribution to the gross state product (GSP) rose by 42% between 2018-2021, while the state’s GSP grew by 16%.
Wages from Tesla and Tesla-connected jobs resulted in $16.6 billion in economic activity, or $44.4 million injected into California’s economy each day.
Tesla confirmed that it now has 47,000 employees in California:
In 2022, we grew to 47,000 employees (direct employment) in California, and our production footprint continued to increase as our 2 millionth vehicle rolled off the lines in Fremont. Since 2016, we have made over $5 billion in capital investments in our facilities. We are confident that these trends will continue and that 2023 will be an even bigger year for Tesla in California.
That’s just a little less than half of its global workforce still being located in California.
Electrek’s Take
Despite Tesla not having an official PR department anymore, I’ve seen an effort lately for the automaker to have more of its own communications directly with the public lately and not just through Elon Musk’s Twitter.
Since dissolving Tesla’s PR department, Musk made it so everything goes through him and that has become a problem lately as he increasingly antagonizes part of the population in the US.
When you lead a company that sells products and services to consumers, it’s just bad business to become publicly political like Musk has been doing over the last year.
It looks like Tesla is trying to have its own voice again with being more active on social media and now some blog posts like this one.
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An Exxon gas station is seen in the Brooklyn borough of New York City on Oct. 6, 2023.
Michael M. Santiago | Getty Images
Exxon Mobil beat third-quarter earnings expectations, as the oil major reached its highest liquids production level in more than four decades.
Here is what Exxon reported for the third quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $1.92 adjusted, vs. $1.88 per share expected.
Revenues: $90 billion, vs. $93.94 billion expected
The oil major booked net income of $8.61 billion in the quarter, or $1.92 per share, down about 5% compared to $9.1 billion, or $2.25 per share, in the year-ago period. Exxon’s profits have declined as refining margins and natural gas prices have pulled back from from historically high levels in 2023.
The company returned $9.8 billion to shareholders in the quarter and increased its fourth-quarter dividend to $0.99 per share.
Exxon said it has reached its high production level in more than 40 years at 3.2 million barrels per day.
The oil major’s stock rose about 1% in pre-market trading. Exxon shares have gained 16.8% this year.
This is a developing story. Please check back for updates.
Chevron beat third-quarter earnings and revenue expectations, returning a record amount of cash to shareholders.
Shares were up 2.6% in the premarket following the report’s release.
The oil major’s quarterly profit, however, declined substantially compared to the year-ago period due to lower margins on refined product sales, lower prices and the absence of favorable tax times.
Chevron is aiming to streamline its portfolio, with asset sales in Canada, Congo and Alaska expected to close in the fourth quarter of 2024. The company is also target $2 billion to $3 billion in cost reductions from 2024 through the end of 2026.
Here is what Chevron reported for the third quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $2.51 adjusted, vs. $2.43 expected
Revenue: $50.67 billion, vs. $48.99 billion expected
Chevron’s net income came in at $4.49 billion, or $2.48 per share, down 31% from $6.53 billion, or $3.48 per share, in the third quarter of 2023. When adjusted for foreign currency impacts, the company reported earnings of $2.51 per share, solidly topping Wall Street’s expectations for the quarter.
Chevron booked revenues of $50.67 billion, also beating Street expectations but declining 6% from the $54.1 billion reported in the third quarter last year.
The oil major returned a record $7.7 billion to shareholders in the quarter, including $4.7 billion in share buybacks and $2.9 billion in dividends.
Chevron produced 3.36 million oil-equivalent barrels per day in the quarter, a 7% increase over the third quarter of 2023, driven by record output in the Permian Basin.
Chevron’s stock is largely flat for the year, underperforming the S&P 500 energy sector which has gained more than 6%. Shares have struggled to gain ground as uncertainty looms over the company’s pending $53 billion acquisition of Hess.
The Federal Trade Commission has cleared the deal, though it prohibited John Hess from joining Chevron’s board.
Chevron remains locked in a dispute with Exxon Mobil, which is claiming a right of first refusal over Hess Corp.’s lucrative oil assets in Guyana. If an arbitration court rules in Exxon’s favor, Chevron’s acquisition of Hess would fail to close.
ZEEKR EV cars are displayed at the 45th Bangkok International Motor Show in Bangkok, Thailand, March 25, 2024.
Chalinee Thirasupa | Reuters
Chinese electric carmaker Zeekr said Thursday its deliveries surged by 92% in October from a year ago, helping the company clock its best month at 25,049 vehicles.
The company has reportedlysaid that it expects to deliver 230,000 cars in 2024. With only two months left in the calendar year, that means Zeekr needs to deliver more than 31,000 cars in November and December each.
The Geely-backed automaker began deliveries of its new five-seat SUV Zeekr Mix on Oct. 23.
Xpeng also beat its personal best for a second straight month, delivering 23,917 vehicles in October. The deliveries included the company’s mass-market car, Mona M03, accounting for over 10,000 units.
Xpeng launched Mona M03 in late August with prices starting at $16,812.
Li Auto, whose cars mostly come with a fuel tank to extend the battery’s driving range, delivered 51,443 cars, slightly lower than its record month in September.
BYD and Aito had not yet released their October deliveries as of Friday afternoon.
Earlier in the week, Chinese smartphone and home appliance company Xiaomi said it delivered more than 20,000 electric vehicles in October.
The company only launched its first car — the SU7 — in late March.
Xiaomi aims to deliver 100,000 electric cars by the end of November. The company has delivered more than 75,000 cars as of October.