Tesla Moves its Headquarters to Texas
Author By Sophia VidaPosted on Electric vehicle maker Tesla is out of California. At least its headquarters, that is.
The company has officially relocated its headquarters to California.
CEO Elon Musk announced the relocation at the company’s 2021 annual shareholder meeting.
It was last April on Tesla earnings call, Musk lashed out at California government officials calling their temporary Covid-related health orders “fascist” in an expletive-laced rant.
Musk also relocated to the Austin area from Los Angeles personally.
The company still plans to increase production in its California plant regardless of the headquarters move.
“To be clear we will be continuing to expand our activities in California,” Musk said. “Our intention is to increase output from Fremont and Giga Nevada by 50%. If you go to our Fremont factory it’s jammed.”
He added, “It’s tough for people to afford houses, and people have to come in from far away….There’s a limit to how big you can scale in the Bay Area.”
While California levies some of the highest personal income taxes in the country on its wealthy residents, Texas has no personal income tax.
Oracle and Hewlett Packard have also relocated to Texas.
“From a legal perspective, there’s less of a regulatory burden in Texas,” said Domenic Romano, managing partner of Romano Law in New York City, to CNBC. “It’s a more business- and employer-friendly state in many ways. You have to jump through far fewer hoops in Texas or Florida as an employer than you do in California in terms of reporting requirements and more.”
According to Texas Gov. Greg Abbott, Musk has supported his state’s “social policies.”
“In general, I believe government should rarely impose its will upon the people, and, when doing so, should aspire to maximize their cumulative happiness,” Musk wrote on Twitter when Texas passed its controversial abortion law. “That said, I would prefer to stay out of politics,” said Musk.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.
