Elon Musk announced Friday that Tesla’s headquarters will move from California to Texas, where much of the electric car maker’s production has already been relocated.
Musk made waves when lashed out at lawmakers in the Golden State in April 2020. The Tesla CEO called them “fascist” over state and local COVID regulations. The company later relocated production to Austin, Texas. Musk himself also made the move to the Lone Star State after years of calling California home.
KXAN-TV reported that during an earnings call on Thursday with Tesla investors, the billionaire announced the company will now be headquartered in Austin, and no longer in Palo Alto, California. He clarified that a facility in Fremont, California, will remain open, and would actually increase production.
“I’m excited to announce we are moving our headquarters to Austin, Texas,” he said. “Our factory is five minutes from the airport, 15 minutes from downtown, and we’re going to create an ecological paradise, because we’re right on the Colorado River. It’s going to be great.”
“To be clear, we will be continuing to expand our activities in California,” Musk said on the call, CNBC reported. “Our intention is to increase output from Fremont and Giga Nevada by 50 percent. If you go to our Fremont factory it’s jammed.”
But Musk criticized Northern California’s high cost of living, which has run several high-profile companies out of the state this past year.
“It’s tough for people to afford houses, and people have to come in from far away,” he said. “There’s a limit to how big you can scale in the Bay Area.”
Speaking to CNBC, business attorney Domenic Romano said the move makes a lot of sense.
“From a legal perspective, there’s less of a regulatory burden in Texas,” he said. “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.”
Musk actually had it out with Alameda County publicly on Twitter last year when he threatened to pull Tesla’s headquarters out of Palo Alto. In response to news that county officials wanted the Fremont factory closed until June due to COVID, he called it “the final straw,” and said he planned to sue.
“Tesla is filing a lawsuit against Alameda County immediately. The unelected & ignorant ‘Interim Health Officer’ of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!” he tweeted.
Tesla is filing a lawsuit against Alameda County immediately. The unelected & ignorant “Interim Health Officer” of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!
— Elon Musk (@elonmusk) May 9, 2020
That tweet was directed at Erica Pan, who CNBC reported had singled Tesla out when she said the company had not been cleared to reported following a brief closure.
“We have not given the green light. We have been working with them looking at some of their safety plans. But no, we have not said that it is appropriate to move forward,” Pan said of Tesla.
In another tweet, Musk threatened to leave the San Francisco Bay Area altogether.
“Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen on how Tesla is treated in the future. Tesla is the last carmaker left in CA.”
Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen on how Tesla is treated in the future. Tesla is the last carmaker left in CA.
— Elon Musk (@elonmusk) May 9, 2020
Palo Alto Mayor Adrian Fine attempted to publicly calm the situation.
“I would be really sad and disappointed if @Tesla left @cityofpaloalto, and stand ready to help. I truly appreciate having a cutting edge company based here, employing people, paying taxes, and helping to solve the climate crisis,” he tweeted.
Palo Alto Mayor here. I would be really sad and disappointed if @Tesla left @cityofpaloalto, and stand ready to help. I truly appreciate having a cutting edge company based here, employing people, paying taxes, and helping to solve the climate crisis. Happy to help @elonmusk. https://t.co/LYsu0gbPfa
— adrian m fine (@adrianfine) May 9, 2020
On Twitter early Friday morning, Fine shared the news that Tesla is moving out of his city.
Less traffic? https://t.co/d5E5Jh0vaM
— adrian m fine (@adrianfine) October 8, 2021
In what appeared to be a sarcastic remark, he commented: “Less traffic?”
This article appeared originally on The Western Journal.
