Pegatron Corp has chosen a site in El Paso Texas, Texas to build a facility that will supply components for Elon Musk’s Tesla Inc (NASDAQ: TSLA), Reuters reported on Tuesday — citing a Taiwanese newspaper.
What Happened: The report says Pegatron had in November revealed that it would set up a factory in the United States to be closer to its clients there.
Known to be the world’s biggest contract electronics manufacturer after Foxconn, Pegatron has previously said it sees electric vehicles as a major source of growth in coming years, the report said.
Pegatron is also a supplier to Apple Inc (NASDAQ: AAPL) and has courted controversy over the discovery of cases of labor law violations. The Tim Cook-led Apple in November last year put Pegatron on probation.
Why It Matters: Pegatron choosing Texas for the site isn’t surprising, as Musk has been making a push to shift more and more of his businesses to the state — making a move away from California.
Price Action: Tesla shares closed 8.60% higher at $762.32 on Tuesday and Apple shares closed 2.43% higher at $134.43.
Read Next: Is Buying Tesla Stock In Tokens Rather Than Actual Shares The Better Choice?
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