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Elon Musk Confirms He Will Move Tesla Headquarters From California To Texas

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Elon Musk confirmed Thursday that Tesla will move its headquarters from Palo Alto, California, to Austin, Texas, taking advantage of the state’s lack of income taxes and fulfilling a promise he first made more than a year ago in response to the Golden State’s strict coronavirus guidelines.

“I’m excited to announce that we’re moving our headquarters to Austin, Texas,” the tech billionaire announced to cheers and applause at the company’s shareholders’ meeting at its Austin auto-assembly plant, which is under construction and adjacent to the Colorado River. river .

“To be clear, we will continue to expand our operations in California, so this is not a matter of Tesla exiting California,” he noted, adding that the company plans to increase production in California and Nevada by 50 percent. .

Musk said Tesla, which has been in Silicon Valley since 2003, has outgrown its Fremont factory.

“It’s like we’re spam in a can here,” he said, adding that affordable housing is scarce and many workers have long commutes.

Elon Musk confirmed Thursday that Tesla will move its headquarters from Palo Alto, California, to Austin, Texas. He made the announcement above at a meeting of the company’s shareholders on Thursday

The company's Austin car assembly plant (pictured above) is under construction and borders the Colorado River

The company’s Austin car assembly plant (pictured above) is under construction and borders the Colorado River

But in Texas, he said, “Our factory is about five minutes from the airport, 15 minutes from downtown, and we’re going to create an ecological paradise here.”

While he didn’t provide a timeline of when Tesla’s Texas headquarters will be operational, he noted that it takes less time to build a factory than it does to achieve large-scale production.

He said the Texas plant will be very similar to Tesla’s Shanghai plant, which was built in 11 months and reached major production after a year.

In December, Musk personally moved to Texas after living in California for two decades. By moving to Texas, Musk was able to get closer to the launch site of his space company SpaceX in Boca Chica and reduce his personal tax burden.

California has some of the highest personal income taxes in the country for its wealthy residents, but Texas has no personal income taxes.

Musk said California is not that affordable and its employees have long commutes.  Above is Tesla's main car factory in Fremont, California

Musk said California is not that affordable and its employees have long commutes. Above is Tesla’s main car factory in Fremont, California

Musk first made public mention of his plan to leave California for Texas in a series of outraged tweets in May 2020 after a California state health official said the factory could not reopen amid the coronavirus shutdown.

The disgruntled CEO took to a comment thread on Twitter to share that he also plans to file a lawsuit against Alameda County.

Musk’s anger was directed at Alameda County Health Officer Erica Pan, who said the Fremont company would not be able to reopen despite California Governor Gavin Newsom lifting some coronavirus restrictions at the time.

“Honestly, this is the last straw. Tesla will now immediately move its headquarters and future programs to Texas/Nevada,” he said in a tweet on May 9, 2020.

“If we keep Fremont’s manufacturing business at all, it will depend on how Tesla is treated going forward. Tesla is the last automaker in CA.”

Musk first teased the move to Texas early in the coronavirus pandemic in response to California's strict reopening guidelines.  The disgruntled CEO took to a comment thread on Twitter about his opposition to the state's reopening rules

Musk first teased the move to Texas early in the coronavirus pandemic in response to California’s strict reopening guidelines. The disgruntled CEO took to a comment thread on Twitter about his opposition to the state’s reopening rules

In a separate tweet, he threatened to sue Alameda County over the restrictions

In a separate tweet, he threatened to sue Alameda County over the restrictions

In a separate tweet, he wrote: “Tesla is immediately filing a lawsuit against Alameda County. The unelected and ignorant “Interim Health Officer” of Alameda is acting contrary to the governor, the president, our constitutional freedoms and common sense!’

The dispute came a week after Musk criticized state officials over lockdown orders he called “fascist” and unconstitutional.

Tesla’s move to Texas from California follows that of other tech giants such as Oracle and Hewlett Packard. Texas has brought in businesses by offering tax breaks to those who place new facilities in the state through the Texas Economic Development Act.

Texas Governor Greg Abbott praised Musk’s plans to move Tesla to Texas last month, saying in a CNBC interview that the two talk often and that Musk supports his state’s “social policies.”

His statement came a day after Texas introduced its strict abortion law that prohibits termination of pregnancy after a fetal heartbeat is detected within six weeks. A federal judge has since ordered a temporary ban on the country’s strictest abortion ban.

Musk shied away from making his views known on the subject.

“In general, I believe that government should seldom impose its will on the people, striving to maximize their cumulative happiness. That said, I’d rather stay out of politics,” he said.

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