Tesla CEO Elon Musk announced the relocation of the company’s headquarters to Texas at the Austin AGM.
Previously, Tesla was headquartered in Palo Alto, California, but now it will move to Austin. He gave several reasons for the move, telling shareholders that his Californian plant in Fremont had grown enormous. In addition, it is quite difficult to find affordable housing for employees in California. In Austin, the plant is approximately 5 minutes from the airport and 15 minutes from the city center.
Despite the headquarters move, Musk also said the company plans to increase production at its California and Nevada plants by 50%. “Don’t think Tesla is leaving California,” Musk said.
Tesla isn’t the first company to move to Texas. In 2020, Oracle announced a move from Silicon Valley to Austin. Tech company HP and automaker Toyota have also moved their U.S. headquarters from California to Texas.
Musk moved from California to Texas late last year to focus on Tesla’s new car manufacturing plant. His rocket company, SpaceX, has a launch pad in southern Texas.
California has tighter labor laws, higher living costs and taxes than other states, and Texas is known for cheaper labor and less stringent regulation.