Billionaire Elon Musk has decided to move his aerospace company, SpaceX, and social media site, X, from California to Texas to join his other companies after declaring that California’s new transgender law was the “final straw.”
Recently, a new law was signed by California Governor Gavin Newsom that bans school districts from requiring teachers to notify parents about changes in a student’s sexual orientation and gender identity. In response to the law, Musk posted on X, “Because of this law and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas.”
SpaceX and X will join Tesla (TSLA), which re-domesticated ( legally recognized and subject to state laws) from Delaware to Texas after shareholders voted in favor of doing so last month. Tesla’s headquarters had already shifted to Austin in 2021 due to strict COVID-19 restrictions in California.
Is TSLA Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 13 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 12% decline in its share price over the past year, the average TSLA price target of $193.18 per share implies 24.7% downside risk.
