Bill Ackman Makes Pitch To Elon Musk For New HQ, Channels Howard Hughes

Billionaire activist investor Bill Ackman took to Twitter on Thursday to make a pitch on behalf of Pershing Square investment Howard Hughes Corp HHC to Tesla, Inc. TSLA CEO Elon Musk.

What Happened

Ackman posted a short video explaining how Howard Hughes owns master-planned cities that Tesla could use for a new headquarters.

“Inspired by our namesake Howard Hughes, another visionary American, we propose a few alternatives for your Nevada or Texas move,” Ackman wrote.

Earlier this month, Musk threatened to move Tesla headquarters out of California and move it to either Texas or Nevada. Tesla is dropping a lawsuit against Alameda County in California that Musk filed after the county didn’t initially allow Tesla’s Fremont factory to reopen due to COVID-19 safety concerns.

.@elonmusk Inspired by our namesake Howard Hughes, another visionary American, we propose a few alternatives for your Nevada or Texas move. @HowardHughesCo owns master planned cities where we can create @Tesla new HQ. Please watch this 2 minute video https://t.co/GmcyOqnXfR

— Bill Ackman (@BillAckman) May 21, 2020

Why It's Important

Howard Hughes is one of Ackman’s seven largest stock holdings. As of the end of March, Pershing held nearly 12.2 million shares of the company valued at more than $616 million.

Musk has been vocally opposed to shelter-in-place orders for weeks, calling them “fascist” on Tesla’s earnings call and imploring governments to “give people back their god damn freedom.”

“Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen[sic] on how Tesla is treated in the future,” Musk tweeted on May 9.

Benzinga’s Take

If Musk is serious about moving Tesla to Texas or Nevada, investors can bet that Ackman will not be the only one attempting to cash in on the move. Analysts have estimated a California departure could cost Tesla and its shareholders upwards of $1 billion.

Do you agree with this take? Email feedback@benzinga.com with your thoughts.

Related Link:

How Bill Ackman Successfully Navigated Coronavirus Market Volatility