Tesla-Commissioned Report Says Automaker Is Vital To State Of California

MAY 28 2018 BY STEVEN LOVEDAY 22

Make no mistake, if you’re in the San Francisco Bay Area it’s highly evident that Tesla is a really big deal.

In many parts of the U.S., you may never see a Tesla vehicle driving. You may also never see a Supercharger station. However, the automaker’s vehicles are all over the roads in California and there are Superchargers in many locations. Not to mention the colossal Fremont factory and growing number of service centers and delivery locations.

Tesla Supercharger

Read Also: Tesla Puts Up Fremont Factory As Collateral

Check This Out: Huge Tesla Fremont Factory Supercharger Expansion Revealed

Tesla feels its a huge asset to the state and decided to prepare a report to put this in writing. How does the Silicon Valley electric automaker impact California?

The automaker turned to IHS Markit to do the necessary research and compile the report. A Tesla spokesperson commented about the reason for the commissioned report:

As one of the largest manufacturers in California and the only remaining car manufacturer, 2017 saw Tesla generate more than $5 billion in economic activity within the state. We remain focused on trying to make a positive difference in California as we work to accelerate the adoption of sustainable energy.

The research proves that Tesla helped pump some $2 billion into the state’s economy last year. However, if you add the automaker’s “Tier-1 suppliers” into the mix, that number grows to over $5 billion. These are contractors that work for the company but aren’t official Tesla employees, Tesla supply chain providers, and other economic impacts via Tesla to related businesses in California.

IHS also points out the Tesla paid out $2.1 billion in wages to California employees in 2017. Tesla employs 20,189 workers in California, and an additional 31,424 are employed in jobs that are Tesla-supported or Tesla-related. President of San Jose-based Creative Strategies, Tim Bajarin said:

These are impressive numbers and Tesla clearly has a positive impact on California’s overall economy.

It was just 2010 when Tesla purchased the former Toyota/GM NUMMI plant. Numbers like this are extremely impressive from a new, small company. President of the California Manufacturers & Technology Association, Dorothy Rothrock pointed out:

When the NUMMI plant closed in 2010, the Fremont-based workforce and suppliers up and down the state felt the blow. Now Tesla’s 20,000 workers, and more than 30,000 jobs supported in the economy demonstrate how much California’s middle-class workers would benefit if we focus on attracting and growing manufacturers in California.

CFRA Tesla analyst, Efraim Levy concluded:

Tesla has become an important economic engine in California and has a large ripple effect (across the state). Even those who own Tesla stock are looking for the company to be either amazing or blow up. And the ramifications for California could be huge either way.

Source: Santa Cruz Sentinel

Categories: Tesla

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22 Comments on "Tesla-Commissioned Report Says Automaker Is Vital To State Of California"

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gagaga
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gagaga

an attempt to prove Tesla being “system relevant” for California ?

eject
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eject

Preparation for a bail out.

Dave
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Dave

That was my first thought. Teals would be worth saving, but not with the current management in place… Remember what Obama told the GM leaders, when they came asking for money…

eject
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eject

It doesn’t have to be an actual bailout. Extending the tax credit would already help them a lot.

CDAVIS
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CDAVIS

This report is about Tesla vs. California United Auto Workers Union…

There is a very real chance Tesla will end up exiting California factory wise over this union battle so this report is to remind the California legislators (which many are supporting the Tesla Fremont Factory unionization effort) and the general California public the economic cost of Tesla exiting California.

I think in the end this California union battle will result in Tesla exiting California as have all other car makers.

Editorial: California’s counterproductive Tesla threat:
https://www.sfchronicle.com/opinion/editorials/article/Editorial-California-s-counterproductive-Tesla-12198872.php

Will Tesla’s CA electric car subsidy require the company to unionize their CA factory?:
http://www.flashreport.org/blog/2017/12/21/will-teslas-ca-electric-car-subsidy-require-the-company-to-unionize-their-ca-factory/

Legislators wouldn’t penalize Tesla for operating in California. Would they?:
http://www.sacbee.com/opinion/editorials/article172970501.html

Sch
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Sch

A company employing 20 000 people and producing 100 000 cars a year in 40 million California is relevant?
In my country, Czechia (EU), Skoda produced 860 000 cars last year with 30 000 employees. Tthe other two automakers in the country produced another 550 000 cars, and that is in a country of just 10 million. I call that important.

Art Vandelay
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Art Vandelay

From revenue perspective, Skoda and Tesla are about the same, yet Tesla has barely started…

TeslaPlease
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TeslaPlease

A highly leveraged manufacturer based in California commissioned a report to communicate (to whom is unclear) how important the company is to the state while claiming to begin the process of establishing production capacity in China.

I hope Tesla feels blessed and appreciative of the support California has provided this start-up company. CA residents have demonstrated that appreciation by purchasing many of their $100K+ cars produced.

CA has always been seen as leading the country in technology, the environment, and open-mindedness. Any other state may have grown a bit nervous 15 years forward and the company still on unsteady ground.

Back to regular programming Q4 2018

Vexar
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Vexar

I wanted to know the “To whom” part as well. Tesla is more important to California than Ferrari is to Italy.

Why did Toyota leave Torrance, CA last year for Plano, TX? Consequently, why is there a Los Angeles Auto Show anymore?

dan
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dan

It wasn’t just Toyota that left CA. The entire ecosystem of parts manufacturers upped and left for TX over the past decade.

Dave
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Dave

Exactly, that why the Fremont Factory basically has 0 value, nobody wanted it.

Mark.ca
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Mark.ca

Some left some came, companies move all the time but i do agree it’s though to be a big polluter in CA, you will have to pay for it…not so much in Tx. TM had only offices.

ffbj
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ffbj
What garbage. Demonstrated their appreciation by buying their cars. It has nothing to do with the fact that their vehicles are superior in every way to their competition. CA is lucky to have Tesla not the other way around as you suggest. But then many of your comments are dilatory and bass ackwards. It’s the companies in CA, not CA itself, that are leading in technology. I think you are confusing your entities and what they do, applying attributes where they don’t belong, and not giving credit where it is due. I find your implications specious with arguments that are unsupportable and contain a prejudicial viewpoint, always anti-Tesla, and as such they are of little import and inaccurate. Plus I don’t care for your pontifical tone. In a nutshell I don’t care for you or your argumentative style, I find them mere sophistry. I for one don’t appreciate it. Though certainly CA has, through policy, been beneficial, but they didn’t create anything themselves besides an environment that facilitates innovation, so they get some credit. In conclusion your comments always contain many errors in supposition and you seem to be asking to be put down, Spoiling for a fight. Well I’m… Read more »
TeslaPlease
Guest
TeslaPlease

There is medication for what ails you.

Best of Luck

Mark.ca
Guest
Mark.ca

There is definitely no cure for what you have.

bro1999
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bro1999

Tesla pays for commissioned report that says how important Tesla is to the state. I’m sure the report was completely objective and not biased in any way.

John
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John

The Bolt is a good car.

Nix
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Nix

It is likely as objective as the study that General Motors commissioned from Center for Automotive Research (CAR) to detail their economic impact of GM: “In 2014, CAR estimates that GM’s U.S. manufacturing facilities
employed 51,600 direct hourly and salaried employees, and that these direct jobs supported another
431,300 jobs in the U.S. economy.”

http://www.cargroup.org/wp-content/uploads/2017/02/Contribution-of-General-Motors-Manufacturing-Plants-to-the-Economies-of-Ten-States-and-the-United-States-in-2013-and-2014.pdf

Are you somehow under the impression that commissioning economic impact studies is somehow unusual, instead of being widespread and common? Or is this just another case of when every other company/industry/lobbying group commissions these studies it isn’t even newsworthy. But when Tesla does it, you think it is somehow bad or negative or whatever you have rattling around in that empty skull?

Get Real
Guest
Get Real

Yes, unlike your trashy, OC mental postings against everything Tesla here on InsideEVs.

Nix
Guest
Nix

This is standard operating procedure for any company with business in front of any state gov’t. All major companies and industries commission such studies. Even wine industry: “California wineries, winegrape growers and businesses serving the industry annually contribute $57.6 billion to the state’s economy and $114.1 billion to the U.S. economy, according to a new report commissioned by San Francisco-based Wine Institute and Sacramento-based California Association of Winegrape Growers,”

http://www.northbaybusinessjournal.com/northbay/sonomacounty/5929429-181/wines-economic-impact-california

Oil and gas: “The Western States Petroleum Association (WSPA) commissioned the Los Angeles County Economic Development Corporation (LAEDC) to study the economic contribution of the oil and gas industry in California ”

https://laedc.org/2017/06/08/oil-gas/

Nix
Guest
Nix

Universities (commissioned from ICF International): “The full economic impact of this $7.96 billion of direct CSU-related expenditures is estimated at nearly $17 billion. Simply stated, each dollar of direct spending by the CSU “grows” to $2.13 when indirect and induced spending is considered. This level of spending activity supports almost 150,000 California jobs annually and generates over $995 million in annual taxes”

https://www.calstate.edu/impact/docs/CSUImpactsReport.pdf

Software industry interst groups: “To gain a better understanding of the software industry’s role as an engine for economic growth, BSA commissioned The Economist Intelligence Unit to conduct an analysis”

http://www.bsa.org/~/media/Files/StudiesDownload/Economic_Impact_of_Software_Report.pdf

Nix
Guest
Nix

Aerospace: “.T. Kearney recently conducted an independent study on the aerospace industry’s impact on California’s economy.”

https://www.atkearney.com/aerospace-defense/article?/a/california-aerospace-industry-economic-impact-study

Apple: “Apple is one of the biggest job creators in the United States, responsible for two million jobs in all 50 states. Last year, we spent over $50 billion with more than 9,000 U.S. suppliers and manufacturers. …. Analysis Group [commissioned] analyzed Apple’s impact on the U.S. job market and economy”

https://www.apple.com/job-creation/

Frankly, this is straight up boilerplate stuff that is so common place that when other companies do it, nobody notices or cares. Much less anybody getting the slightest bit hot and bothered about it in any way.