Oil and Gas Today with Chris Faulkner – Podcast #504

Texas Governor Rick Perry went to California again this month.  This time wooing executives at Tesla to bring the manufacturing of their electric vehicle batteries to Texas.

65-hundred … new-jobs….strong.  And….to the flat-lands of San Antonio instead of the pristine coasts and fertile hills of Northern California.

Why would Tesla even consider such a move?  After all, you can’t even BUY a Telsa in Texas.  The Texas Automobile Dealers Association lobbied hard to block Tesla’s only sales model – direct to consumers – from the Lone Star State.

So why would they even consider building THE Number-One component of the electric car outside California?

That’s easy.  Regulation.

Look at the difference between the two states.  Texas is mostly flat and hot in the summer.  California has some of the most beautiful natural resources in the country.  Yet even pristine coasts, redwood forests and picture perfect weather….can’t withstand the tax and regulation burden California has imposed on the companies headquartered there.

And THAT’S why it’s so easy for a guy like Rick Perry to woo more and more Californians to Texas.

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