Tesla CEO Elon Musk has officially announced that Tesla is moving its headquarters from Palo Alto, California, to Austin, Texas.
Musk cited affordable housing for employees as one of the biggest reasons for the move.
The meeting took place at Tesla’s vehicle assembly plant under construction outside of Austin on a property that borders the Colorado River, near the city’s airport.However, the company 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.”But, 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.”
I would also suggest that the attitude of some of our leading politicians helped inspire the decision.
On the other hand, Texas Gov. Greg Abbott touted the plans as a big win for the Lone Star State, Tesla, and capitalism.
“Transformational leaders like Tesla picked Texas for their next generation of innovation,” Abbott said, as the broadcast cut to the burgeoning construction site of the company’s $1.1 billion gigafactory in eastern Travis County.Now, with Tesla’s headquarters moving to Austin, Abbott is once again touting the state’s allure when it comes to corporations looking to relocate.“Here in Texas, we invest in our pro-business environment and work with entrepreneurs to develop and grow their businesses,” the governor said in a statement to KXAN. “Because of this, Texas continues to be a magnet for talent and innovation.
California Gov. Gavin Newsom pouted and credited state policies for Tesla’s success.
And he said California deserved some of the credit for Tesla’s success, giving the company “hundreds of millions of dollars” in tax breaks and adopting policies to encourage electric cars. California has for years required automakers to sell zero-emission vehicles in the state or buy credits from companies that do, and it remains the country’s largest electric vehicle market.“Our regulatory environment helped create that company and grow that company,” Newsom said. “I have reverence and deep respect for that individual. But I also have deep reverence and respect for this state and what we’ve done.”
Newsom can whine all he wants, but California politicians and their polices helped drive Tesla to Texas.
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