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Tesla generated $44.4 million of economic activity for CA every day in 2021: IHS Markit

Credit: Tesla

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A recent post from Tesla has outlined a number of key insights about the electric vehicle maker’s footprint in California. While Tesla currently lists Gigafactory Texas as its headquarters, the Golden State will always be the place where the company grew and hit its momentum. And based on a report, Tesla has provided substantial economic activity for California over the past few years, generating $44.4 million of economic activity every day in 2021. 

Tesla was founded in San Carlos, California, 20 years ago, and since then, the company has grown into the world’s undeniable leader in electric vehicles and the state’s largest manufacturing employer. As noted by Tesla in its recent post, its California footprint today is comprised 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.” 

Credit: IHS Markit

These facilities have had a large impact on California’s employment, wages, gross state product, and taxes. This became particularly notable over the past decade, with Tesla-supported jobs in the state increasing by 40% from 2018 to 2021. Tesla’s 2021 wages also exceeded the state average by 50%, a notable number considering the narrative painted against the company due to its non-unionized workforce.

As per a report from IHS Markit, Tesla’s contributions to the California economy can be summarized in the following section:

Supported an average of 59,440 jobs from 2018 to 2020, rising to 80,484 jobs in 2021 

  • In 2021, this represented 0.5% of California employment or 1 out of every 208 jobs 
  • For every 100 direct Tesla jobs, 50 more were supported in the supply chain and 68 by follow-on consumer activity 

Stimulated economic activity (sales) of $16.6 billion in 2021 was 40% higher than the 2018 to 2020 average of $11.9 billion

  • This was equivalent to generating $44.4 million of economic activity every day in 2021
  • Tesla’s direct sales rose from $5.7 billion in 2018 to $7.4 billion in 2021
  • Tesla directly spent over $1.6 billion with California suppliers in 2021, which triggered another $900 million in supply chain sales activity

Contributed $10.4 billion or 0.3% of California’s gross state product (GSP) in 2021

  • This was 42% higher than Tesla’s 2018 to 2020 average GSP contribution of $7.2 billion. 

On average, $1.0 million of Tesla’s revenue in California converts to $1.5 million in GSP

Stimulated an average annual wage of $128.6K in California during 2021

  • This was 50% higher than the CA average annual wage of $85.7K

Approximately 30% of the economic contributions were stimulated by the local consumer spending of Tesla and its suppliers’ employees

Generated a total of $1.5 billion in California state & local taxes plus federal $2.5 billion in federal taxes from 2018 through 2021

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Last year, Tesla’s economic contributions to California were still impressive, with the company growing its headcount to 47,000 employees in the state. That’s still a significant number, considering that California is no longer the state that hosts the electric vehicle maker’s headquarters. That being said, Tesla executives have noted in the past that despite Tesla’s expansion, the company would continue to grow in California, just as revealed in IHS Markit’s report. 

IHS Markit’s report on Tesla’s impact on California’s economy from 2018 to 2021 can be viewed below.

Tesla California Economic Impact Final Report October 2022 by Simon Alvarez on Scribd

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Elon Musk will give ‘every kid in America’ a SpaceX share in 2027

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Credit: Grok Imagine

Elon Musk said he is planning to give “every one of his SpaceX shares to every kid in America” in 2027, stating that “this will be the first of many.”

SpaceX went public earlier this year, and its stock price has been relatively stable since leveling off shortly after its IPO. Based on its current price, it’s a gift of just over $10 billion to children across the United States.

It appears to be closely related to President Donald Trump’s bank accounts for children, which were set up earlier this year as Trump Accounts.

Just hours earlier, Anthropic had announced the establishment of its Anthropic Public Benefit Fund, “a new wholly-owned entity dedicated entirely to public benefit.” Musk responded by stating he recommended “giving the shares directly to the public,” and that he would be doing it that way.

Just a little bit later, Musk said children across the U.S. would be getting a share from him:

There are roughly 70 million children, meaning someone under the age of 18, in the United States, according to the Federal Interagency Forum on Child and Family Statistics. Musk’s ownership of SpaceX stock shows he has around 849 million Class A shares of SpaceX stock, according to filings with the SEC.

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Elon Musk reveals why Boring Co’s biggest East Coast project never happened

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(Credit: The Boring Company)

Elon Musk revealed in a post on X that “Permits were impossible to get,” explaining the fate of The Boring Company’s most ambitious East Coast proposal.

The comment responded to a query about what became of his July 20, 2017 announcement that he had “just received verbal govt approval” for an underground Hyperloop connecting New York City, Philadelphia, Baltimore, and Washington, D.C., capable of carrying passengers from the Big Apple to the Nation’s Capital in just 29 minutes.

The Boring Company receives verbal ‘approval’ to build NY to DC Hyperloop tunnel

The 2017 post, which envisioned city-center stations and multiple elevators in each city, sparked immediate scrutiny. Local and state officials in New York, Philadelphia, Baltimore, and D.C. said they had no knowledge of any approval. A White House spokesperson confirmed only “promising conversations” about the transformative infrastructure.

Musk clarified shortly after that there was “still a lot of work” to do for formal approvals.

Limited progress followed, as Maryland Governor Larry Hogan’s administration issued a conditional utility permit and supported work near Fort Meade. In 2018, Washington, D.C., granted a preliminary permit for site preparation and excavation on a vacant lot at 53 New York Ave. NE in the NoMa neighborhood, which The Boring Company said could become a station.

A draft environmental assessment for a D.C.-Baltimore segment was released in 2019. Yet, by April 2021, the company had removed the project from its website, and the Federal Highway Administration reported receiving no indication of further interest. Communication with Maryland officials had ceased.

The full corridor would have required coordination among the District of Columbia, Maryland, Pennsylvania, New York, the Federal Highway Administration, the Army Corps of Engineers, the National Park Service, and other agencies.

Environmental reviews under the National Environmental Policy Act, utility clearances, and approvals for novel infrastructure added to the overall complexity of the project and its approval.

Speculation on the permitting barriers centers around a few factors, but a multi-state, multi-level route involving unproven high-speed vacuum-tube technology inherently triggers exhaustive safety, environmental, and engineering reviews that can stretch for years, even for conventional projects.

There are also other elements, of course, like officials who may face political exposure if a privately funded, untested system encountered anything such as cost overruns, delays, or safety issues. On the outset of this project, there were limited things such as engineering plans or demonstrated technology maturity, which also added to the potential skepticism.

The East Coast vision for Boring Co., once framed as a privately funded revolution that could reshape Northeast travel, quietly ended without construction of the promised network. Musk’s recent statement frames the outcome as a regulatory impasse, unfortunate but not unexpected.

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Tesla CEO Elon Musk reminds everyone about Roadster’s true meaning

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Elon Musk addresses the crowd next to the new Tesla Roadster, which Tesla offers in Performance, Thrust and Rocket versions. (Image: Tesla/X)
Elon Musk addresses the crowd next to the new Tesla Roadster, which Tesla offers in Performance, Thrust and Rocket versions. (Image: Tesla/X)

Tesla CEO Elon Musk took to his social media platform X on Sunday to remind everyone that the Roadster’s true meaning is not about company growth or adding dollars to shareholders’ pockets. Sometimes, you just do things because you can.

Following the Roadster’s epic unveiling event last Thursday, skeptics and critics of the company or the project itself came out to say that the vehicle is a pointless project because it is not geared toward growing the company, delivering supreme margins for profitability, nor does it contribute to the big picture of Artificial/Super Intelligence.

But that’s just the thing: Roadster is not meant to be some shareholder dream; it’s meant to be a vehicle that people buy just because it is something awesome, unique, and the first of its kind.

Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds

Musk had to remind those who are skeptical about the Roadster’s importance to the company mission that while it is not a major contributor to Tesla’s long-term goals, it is something that is being built just because it can be:

“Optimus and Cybercab will be the vast majority of Tesla’s value. The only things that will scale to incredible size (K2 and beyond) economically are super intelligence, robots, solar power, and mass to space. And, of course, if you have the first two, the rest will follow. But Roadster is super cool, so we’re doing it anyway.”

Musk has said on many occasions that Optimus would be the project that would make up the vast majority of Tesla’s value in the coming years.

Robotics will be a major focus of Tesla over the coming years, especially as Musk believes Optimus will enable work to be optional for humans and will enable what he calls “High Universal Income.”

Cybercab will be a passive income opportunity for owners, Musk and Tesla have said for a very long time, as a fleet of self-driving vehicles will operate within a ride-hailing Robotaxi service that won’t require a human driver to be present.

Tesla investors are more than enthusiastic about the company’s future projects, at least from a general consensus perspective. However, it is important to note that the Roadster is a fun and cool project that pushes the boundaries of what people thought was possible for an automobile.

What we saw last week was the first true example of a flying car, and despite the backlash about how it might not contribute to Tesla’s grand ambitions, it’s okay to have fun sometimes, too.

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