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Located in Fremont, CA, the plant has been an economic boon for the San Francisco Bay area, but for the US auto industry, it's borderline off the grid.So last week's news that CEO Elon Musk is moving to Texas, where Tesla is preparing to build a new factory, wasn't exactly shocking. So Tesla is bulking up: It brought a factory online in China in 2019, and has new plants slated for Germany and Texas.The old NUMMI factory's liability is its location, and there's a reason it's the only assembly plant left in California. The legacy US auto industry is concentrated in the Upper Midwest, and all newer factories had been built in the South, where labor laws don't favor unions and where an extensive supply chain has developed over four decades.Nobody in their right industrial mind would put a new car plant in California, so Tesla was an outlier.
As said here by Matthew DeBord