Elon Musk announced that the Tesla’s headquarters will move to Texas from California
Musk announced the matter at the electric carmaker’s annual shareholders’ meeting in Austin.
“I’m excited to announce that we’re moving our headquarters to Austin, Texas” He said during the meeting held in a Texas car factory.
He explained several reasons for the move, Also the Californian factory in Fremont was “jammed” he added.
Another reason musk told was California is a difficult place for his employees to get affordable housing.
“There’s a limit to how big you can scale it in the Bay Area. In Austin our factory is like five minutes from the airport, 15 minutes from downtown,” he said.
“This is not a matter of, sort of, Tesla leaving California,” he said, saying it plans to increase output from its main California factory and Nevada factory by 50%.
The Fremont, California factory nonetheless is “jammed” and it is tough for people to afford houses in California, he added.
Musk moved to the Lone Star State from California in December to concentrate on the Tesla’s new plant in the state along with his SpaceX rocket company, situated in the southern tip of Texas.
He tweeted: “Tesla will now move its HQ and future programs to Texas/Nevada immediately.”
In 2020, tech powerhouse Oracle also revealed it was moving from Silicon Valley to Austin.
HP and carmaker Toyota have also moved their US headquarters to Texas from California.
When compared to Texas , California has stronger labor laws, and higher living expenses, while Texas is famous for cheaper labor and less strict regulations.
Musk has not yet confirmed when the move would happen.