Tuesday, March 21, 2023
HomeBusinessTesla CEO Elon Musk States They Will Move HQ To Texas

Tesla CEO Elon Musk States They Will Move HQ To Texas

Tesla has stated that it would 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 lawmakers in Alameda County, California, where a main Tesla manufacturing is located, had a falling out with Mr Musk over the company’s Covid reaction.

He explained the move to shareholders, saying the company’s Californian facility in Fremont was “jammed.”

He also warned shareholders that finding cheap homes in California was challenging for his staff.

“In the Bay Area, there’s a limit to how big you can go. Our plant is around five minutes from the airport and 15 minutes from downtown Austin “he stated

California has had a tumultuous relationship with the wealthy technology mogul at times.

Musk had a public dispute with California legislators in May after being forced to keep Tesla’s Fremont facility shuttered.

“Tesla will now relocate its HQ and future initiatives to Texas/Nevada immediately,” he tweeted. However, until recently, the relocation had not been verified.

Despite the move, Mr Musk stated that the firm expected to boost production from its California and Nevada plants by 50%.

“This isn’t a case of Tesla sort of abandoning California,” he explained.

Tesla isn’t the first firm to relocate to the state of Texas. Oracle, a computer behemoth, stated in 2020 that it will relocate from Silicon Valley to Austin.

HP, a technology company, and Toyota, an automaker, have both relocated their US headquarters from California to Texas.

California has stricter labor regulations, greater living costs, and more taxes than other states, but Texas is recognized for cheaper labor 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 production factory.

In the southern edge of Texas, his SpaceX rocket firm maintains a launch facility.



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