Elon Musk, Tesla CEO, announces that Tesla will be moving its headquarters to Texas at the annual shareholder meeting held at the new Austin plant. Tesla
Tesla was founded in Silicon Valley in 2000. It is now moving its headquarters to Texas, where Elon Musk, the billionaire electric-car maker CEO, lives. However, it will continue building cars in San Francisco Bay Area.
Musk announced the news at Thursday's annual shareholder meeting. It was held at Tesla's Texas Gigafactory in Austin. Musk did not specify when Palo Alto's current headquarters would be closing, but it is not surprising.
Musk stated that we will continue to expand our activities here in California. This is not about Tesla leaving California. We want to increase Fremont's output and a Nevada gig by at least 50%.
Although California is Tesla's largest market and the biggest source of vehicle production in the U.S., Musk has become less friendly to the state over the years. This was most evident after officials in Alameda County (where the Fremont factory is situated) imposed restrictions to ensure worker safety during the Covid-19 pandemic of 2020. Musk, whose views have become more libertarian in recent years, moved to Austin, Texas in 2020.
In a May 2020 interview, Gavin Newsom, California Governor, stated to CNBC that Elon Musk would not be leaving California anytime soon, after he had initially threatened to.
Musk is becoming more resentful at California's strict regulations, while embracing the cheaper and less-regulated Texas. After California passed a strict abortion law in September and Texas Governor Rick Perry was elected following loosening gun regulations and tighter voting rules. Greg Abbott stated that the billionaire entrepreneur loves the state's social policies.
California is the birthplace for innovation. It is home to the fifth largest economy in the globe and the most innovative ideas and companies on earth. Erin Mellon, spokesperson for Newsom, stated that success is not due to our progressive policies but because of them.
We support our workers, public health, women's rights to choose, and we stand up for them. These are California's core values. We will continue to create more jobs than any other state and outpace the nation's economic recovery.
Tesla's move to its headquarters is the first in California by an automaker since Toyota announced similar plans to relocate its North American headquarters from suburban Los Angeles, to suburban Dallas. California is home to electric vehicle startups Lucid Motors and Fisker Inc. Rivian are currently based there.
Tesla's Texas Gigafactory will begin vehicle production before the end 2021. Tesla
We believe that this was a smart strategic decision for Tesla. The company is actively building its Austin footprint, and with Cybertruck and more Model 3/Y manufacturing, Musk is now doubling its Texas footprint, with capacity ramping up into 2022. This is according to Daniel Ives, an equity analyst at Wedbush Securities. We believe that Fremont will remain a key location for Tesla Model 3 production. However, this was the first step towards making Austin its domestic and international foundational place over the next decade. This move is likely to be accelerated by Tesla's recent frustrations with California officials.
Musk mentioned the need for more space, high home prices in the Bay Area, and the long commutes of workers as some of the problems.
Musk stated that we were here in Austin, and our factory is about five minutes from Austin's airport, and 15 minutes from downtown. We are going to make the Colorado River an ecological paradise. It's going to be amazing.
Tesla shares rose 1.4% to $793.61 in Nasdaq trading Thursday
