Tesla has stated that it will relocate its corporate headquarters from California to Texas. Elon Musk, the company's CEO, announced at the company's annual shareholders' meeting in Austin. Local officials in Alameda County, California, where the Tesla manufacturing get located, had a falling out with Mr. Musk over the company's Covid response. He explained the move to shareholders, saying the company's Californian manufacturing in Fremont was "jammed."
He also warned shareholders that finding inexpensive housing in California was challenging for his employees. "In the Bay Area, there's a limit to how big you can go. Our factory is just five minutes from the airport and 15 minutes from downtown Austin "he stated California had a tumultuous relationship with the billionaire technology mogul at times. Musk had a public battle with California officials in May after being ordered to keep Tesla's Fremont plant shuttered.
Despite the move, Mr. Musk stated that the business aimed to expand production from its California and Nevada operations by 50%. "This isn't a case of Tesla departing California," he explained. Tesla isn't the first corporation to relocate to the state of Texas. Oracle, a tech behemoth, stated in 2020 that it would relocate from Silicon Valley to Austin. HP, a technology company, and Toyota, a manufacturer, have relocated their US headquarters from California to Texas.
California has stricter labor rules, living costs, and more taxes than other states, but Texas is known for cheaper labor and less regulation.