Elon Musk, the CEO of Tesla, has announced that the company’s headquarters will be relocated to Texas
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Tesla has stated that it will relocate its corporate headquarters from California to Texas.
Elon Musk, the company’s CEO, made the announcement at the company’s annual shareholders meeting in Austin. Local officials in Alameda County, California, where the main Tesla manufacturing is located, had a falling out with Mr. Musk over the company’s Covid response.
He explained the move to shareholders, saying the company’s Californian manufacturing in Fremont was “jammed.”
He also warned shareholders that finding inexpensive housing in California was challenging for his employees.
“In the Bay Area, there’s a limit to how big you can go. Our factory is just five minutes from the airport and 15 minutes from downtown Austin,” he said.
California has had a tumultuous relationship with the billionaire technology mogul at times. Musk had a public battle with California officials in May after being ordered to keep Tesla’s Fremont plant shuttered.
Tesla will now relocate its HQ and future programmes to Texas/Nevada immediately, “he tweeted. However, until now, the relocation had not been confirmed.
Despite the move, Mr. Musk stated that the company aimed to increase production by 50% from its California and Nevada operations. “This isn’t a case of Tesla sort of departing California,” he explained.
Tesla isn’t the first corporation to relocate to the state of Texas. Oracle, a tech behemoth, stated in 2020 that it would relocate from Silicon Valley to Austin. HP, a technology company, and Toyota, a manufacturer, have both relocated their US headquarters from California to Texas. California has stricter labour rules, greater living costs, and more taxes than other states, but Texas is known for cheaper labour and less regulation.
Mr. Musk relocated from California to Texas at the end of last year in order to work on Tesla’s new automobile manufacturing plant. At the southernmost point of Texas, his SpaceX rocket company has a launch pad.