This article TSLA
Elon Musk, Tesla's CEO, announced that the company will move its headquarters from Palo Alto (California) to Austin, Texas at Thursday's shareholder meeting. The meeting was held at Tesla's vehicle assembly facility outside of Austin, on a property bordering the Colorado River. It is located near Austin's airport. The company will continue to grow production at its California plant, regardless of whether the headquarters move is made. Musk stated, "To be clear, we will continue to expand our activities here in California." "Our goal is to increase Fremont's output by 50%. It's jammed when you visit our Fremont factory. He said that it was difficult for people to afford houses and people must come from far away There is a limit on how large you can build in the Bay Area.
He said that the Austin plant is still in production and would require some time to reach full capacity. Musk stated that it takes Tesla less time than it does to build a factory. Tesla's Shanghai plant, for example, was completed in just 11 months. However, it took over a year to achieve high-volume production. He believes that Tesla's new Austin plant will follow the Shanghai example. Musk has expressed dissatisfaction with California for some time. Musk slammed California officials for their temporary Covid-related Covid health orders as "fascist" during a Tesla earnings call in April 2020. He used expletive-laced language to attack the government officials. Musk later moved to Austin from Los Angeles where he lived for over two decades.
Musk, who is also the CEO of SpaceX, was able to lower his personal tax burden while being closer to a SpaceX launch location in Boca Chica (Texas). The board of Tesla granted Musk a compensation package that could earn him stock awards. It was based on Tesla's market cap growth and other financial targets. According to InsiderScore, Musk could make more than $20 billion if he sells options that expire in 2021. California has some of the highest personal income taxes, while Texas does not have any. Tesla isn't the only company to move its headquarters from California to Texas. Hewlett Packard and Oracle are two of the tech giants that made this move last year. Texas' Texas Economic Development Act offers tax breaks for companies looking to set up new facilities. Texas is actively recruiting. Austin is home to a top-ranked university and cultural events such as South by Southwest. This makes Austin a desirable location for tech employers.
