Tesla CEO Elon Musk stated Thursday that the corporate is transferring its headquarters from Silicon Valley to Austin, Texas, the place it has been constructing a brand new manufacturing unit for a bit of greater than a 12 months.

Musk stated Tesla will proceed to function its electrical automobile manufacturing unit in Fremont, CA, and that he even plans to attempt to enhance manufacturing there by 50 %. “Just to be clear, though, we will be continuing to expand our activities in California,” he stated throughout the firm’s annual shareholder assembly. “So this is not a matter of Tesla leaving California.”

Musk had beforehand threatened to tug Tesla’s whole operations out of California as a result of he disagreed with the shelter-in-place orders the state leaned on early within the coronavirus pandemic. Tesla even sued the county that the corporate’s California manufacturing unit is in. Musk moved to Texas final 12 months, as SpaceX elevated its presence there. The Tesla CEO stated at one level that he thought California had develop into too “complacent” with respect to its residents and companies.

Tesla began constructing its subsequent US Gigafactory outdoors Austin in 2020 and has made an unbelievable quantity of progress within the intervening 12 months. “We’re going to create an ecological paradise here.. on the Colorado River,” a reference to how the corporate plans to open up elements of the land to the general public. Musk stated Thursday that Tesla can also be taking a look at doing extra “major installations” of battery storage just like the one first reported by Bloomberg earlier this year.

Musk beforehand stated that Tesla selected to construct in Austin over different areas as a result of workers have been extra keen to maneuver there.

“It’s tough for people to afford houses [in California],” Musk stated Thursday. Tesla’s Austin location can also be proper close to the native airport, which Musk stated is handy.

Tesla will likely be transferring to Texas at a time when many companies have discovered themselves below stress to depart, after the state lately handed some of the restrictive anti-abortion legal guidelines within the nation. After the legislation was handed, Texas’ Governor Greg Abbott used Musk and Tesla for instance to attempt to show this was not a pattern during a CNBC interview. Abbott stated in September that “Elon had to get out of California because, in part, of the social policies in California,” and that Musk “consistently tells me that he likes the social policies in the state of Texas.”

Musk responded to that clip in a tweet, saying he “believe[s] government should rarely impose its will upon the people, and, when doing so, should aspire to maximize their cumulative happiness.”

“That said, I would prefer to stay out of politics,” he added.



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