Tesla CEO Elon Musk said the company is moving its headquarters from Palo Alto in California’s Silicon Valley to Austin, Texas, where it is building a massive car and battery manufacturing complex a little more than a year ago.
Tesla is joining Oracle, Toyota and Hewlett-Packard in moving its US headquarters to Texas from California, which has relatively high taxes and living costs.
While Silicon Valley is a place for developing new ideas and businesses, Texas is known for cheaper labor and less stringent regulations.
Musk said Tesla continues to operate its electric vehicle plant in Fremont, California, and that he plans to try to increase production there by 50 percent.
explained through Annual shareholder meeting In Company: We continue to expand our activities in California. So this is not a question of Tesla leaving California.
The move means that the company’s home will not be in the state where its cars are most popular. Instead, the company is headquartered in a state where it cannot legally sell its vehicles directly to consumers.
Musk had previously threatened to pull the company’s entire operations out of California in 2020 due to his disagreement with stay-in-place orders the state used to help keep people safe early in the coronavirus pandemic.
The company is suing the boycott of the company’s California plant as a form of protest. Musk himself moved to Texas last year, where SpaceX significantly increased its presence in the state’s southern tip.
The company’s CEO at one point said he believed California had become complacent about its residents and businesses.
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Tesla continues to operate in California
The company began building its next Gigafactory in the United States outside of Austin in 2020. It’s made significant progress in getting it done. Musk said Tesla is also looking to do more major battery storage installations.
The company’s CEO noted that he chose to build in Austin because employees were more willing to move to Texas. And there’s a limit to how big it can be in the San Francisco Bay Area, adding that it’s hard for people to buy homes in California.
Tesla’s location in Austin is also near the local airport, which Musk said is convenient. The company is moving to Texas at a time when many companies have found themselves under pressure to leave due to recent laws.
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