The report states that Tesla has rule the Golden State out of contention as the home of its Gigafactory, which will cost $4 billion to $5 billion and employ 6,500 people. Neither the company nor the state offered a concrete reason, but the report states cost, specifically real estate prices, and politics are the two main reasons.
Tesla is now looking at 500-acre to 1,000-acre locations in Arizona, Nevada, New Mexico and Texas.
The stock was falling 2.36% to $246.98 at 3:31 p.m. on Friday.
Must Read: Warren Buffett's 10 Favorite Stocks
TheStreet Ratings team rates TESLA MOTORS INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."