Elon Musk, Tesla CEO, announced that the company will be moving its headquarters from Palo Alto (California) to Austin (Texas), a city that has seen an influx of remote workers and tech companies in recent years. The news was announced at the 2021 Tesla, Inc. The Annual Meeting of Stockholders was held at Tesla Austin gigafactory rather than the Bay Area, as in previous years.
Musk stated that Tesla will continue to expand its activities in California and increase its Fremont gigafactory output by 50%. However, he did not elaborate on how he would do this. The factory can currently produce approximately 500,000 Model 3s and Model Ys annually and another 100,000 Model S or Model X each year.
Tesla sued Alameda County last May over the closing of his Fremont manufacturing plant. This was to stop the spread COVID. It also restricted any businesses that were not considered essential. He threatened to leave the state. Musk tweeted: "Frankly, this is it. This is the last straw." Musk dropped the lawsuit a few weeks later. Tesla will immediately move its headquarters and future programs to Texas/Nevada. It will depend on how Tesla is treated in future whether Fremont's manufacturing activity can be retained. Tesla is the last remaining carmaker in California.
This is, quite frankly, the last straw. Tesla will immediately move its headquarters and future programs to Texas/Nevada. It will depend on how Tesla is treated in future whether Fremont's manufacturing activity is retained. Tesla is the last remaining carmaker in California. Elon Musk (@elonmusk), May 9, 2020
At the Shareholder event, there was no mention of the drama with Alameda County. Musk said that Texas was a better location for workers and Musk explained this.
Musk said that it is difficult for people to afford homes and that people must come from far away. In the Bay Area, there is a limit on how large you can make it. Our factory in Austin is about five minutes away from Austin's airport and 15 minutes from Downtown.
Musk stated that Tesla intends to create an eco-paradise at Austin, near the Colorado River.
Musk provided updates about the Cybertruck during the event. He stated that production would begin at the end 2022 and will be in full production by 2023. With production beginning by 2023, the Tesla Semi and Roadster will follow.
Musk blamed multiple supply chain shortages, including the continuing semiconductor shortage, for the delay.
He said that the Semi requires a lot more cells than other types, and therefore, has to have a lot [and] lots of chips.
Both the Semi prototype and Cybertruck were unveiled by Tesla in 2017, and both have been delayed repeatedly since then, mainly due to supply chain problems.
This is still a developing story. Keep checking back for more updates.
