8th October (WNN) — Elon Musk has announced that Tesla will move its headquarters from California to Texas.
Musk, the electric car company’s chief executive, made the announcement Thursday afternoon during the annual shareholders meeting, adding that the company’s headquarters will move from Palo Alto to Austin.
“I am excited to announce that we are moving our headquarters to Austin, Texas,” he said to cheers from the crowd.
He explained that the reason for the relocation was the cost of affordable housing in and around Palo Alto as well as the workers’ long commute.
“We’re taking it as far as possible, but there’s a limit to how big you can get it in the Bay Area,” he said.
In Austin, where the shareholders’ meeting was held, his factory is just minutes from the airport and 15 minutes from downtown, he said.
“It’s going to be great,” he said.
He explained that the move doesn’t mean Tesla is moving out of California because they plan to increase their activities and production from their Fremont factory as well as their Nevada factory by 50%.
“We’re just hitting the sides of the bowl,” he said. “If you go to our Fremont factory, it just gets jammed.”
Austin Mayor Steve Adler tweeted that they “welcome to the home of Tesla!”
“It’s a tech company that creates clean-manufacturing, medium-skill jobs for Austin’s needs,” he said. said. “We are one of the safest big cities, with a strong innovative, entrepreneurial, environmentally focused culture.”
Tesla’s announcement comes after a public dispute between the billionaire and California officials.
Last May, he threatened to move his headquarters to Texas and sued local officials after his Fremont facility was forced to close due to coronavirus restrictions.
“This is the last straw,” he tweeted in May. “Tesla will now move its headquarters and future programs to Texas/Nevada immediately. If we also keep Fremont manufacturing activity intact, it will [dependent] How Tesla is treated in the future. Tesla is the last car maker in CA.”
Tesla isn’t the only tech company moving from California to Austin, Texas. Oracle announced it was stepping down in December, explaining that doing so would put the company in the “best position” for growth.