Tesla has announced it will move its company headquarters to Texas from California.
Elon Musk, the company’s CEO, revealed the change during the company’s annual shareholders’ meeting in Austin.
Mr. Musk has clashed with local lawmakers in Alameda County, California, which is home to a critical Tesla factory, over the company’s Covid response.
He cited various reasons for the transfer, including the fact that the company’s Fremont, California, manufacturing was “clogged.”
California, he explained to shareholders, was equally difficult for his employees to find affordable housing.
“There’s a limit to how big you can scale it in the Bay Area. In Austin, our factory is like five minutes from the airport, 15 minutes from downtown,” he said.
California has had a rocky relationship with the billionaire technology mogul at times.
Musk had a high-profile battle with local California authorities in May after being ordered to close Tesla’s Fremont plant.
“Tesla will now relocate its headquarters and future programs to Texas/Nevada immediately,” he tweeted. However, until now, the move has not been confirmed.
Tesla is filing a lawsuit against Alameda County immediately. Alameda’s unelected & ignorant “Interim Health Officer” is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!
— Elon Musk (@elonmusk) May 9, 2020
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Despite moving its headquarters, Mr. Musk also said that the company planned to increase its California and Nevada factories by 50%.
“This is not a matter of, sort of, Tesla leaving California,” he said.
Tesla is not the first company to move to Texas. In 2020, tech powerhouse Oracle announced it was moving 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 and higher living costs and taxes than other states, but Texas is noted for its less expensive labor and lax regulation.
Mr. Musk relocated from California to Texas at the end of last year to focus on Tesla’s new automobile manufacturing facility.
His SpaceX rocket company has a launchpad in the state’s southeastern corner.