Tesla Moved its HQ to Texas Following Explicit Offer from California Assemblywoman

Tesla Moved its HQ to Texas Following Explicit Offer from California Assemblywoman

Photo: Tesla

Tesla has moved its headquarters to Texas, as CEO Elon Musk announced during the 2021 Annual Shareholders Meeting. In addition to the fact that this decision has a strong financial rationale, it also follows after a member of the California legislature publicly used obscene language towards Musk in May 2020. California will suffer huge losses in connection with this decision.

Tesla CEO Elon Musk announced during the 2021 Annual Shareholders Meeting that the company will move its headquarters from Los Angeles, California to Austin, Texas—a logical next step in the wake of Tesla and Musk's own recent moves. The head of the company explained that, first of all, this step is beneficial for the company and its employees. The cost of living in the Bay Area is much higher, so the company's employees will be able to better afford rent and the cost of daily needs.

The head of the company explained that the change in the location of the headquarters does not mean a complete abandonment of California, and in fact, Tesla plans to increase its operations at its factories in Fremont and Nevada by 50%. However, the location of the manufacturer's headquarters in Texas will have a number of large financial benefits for the company, compared to the location in California.

Tesla is building its largest electric vehicle plant, scheduled to begin operations this year, in Austin. In addition, the operations of Musk's space company, SpaceX, and the tunneling company, The Boring Company, are concentrated in Texas. To this effect, the head of the company personally moved to Austin in December 2020. However, there are other reasons that prompted Tesla to move its headquarters to Texas.

In May 2020, when there was a tense situation with COVID-19, California continued to block the start of Tesla's factory, although all automakers in the United States had already begun work. While Musk selflessly tried to resist the actions of the government, trying to start the factory and provide tens of thousands of its employees with work, the authorities did not choose appropriate nor wise words in expressing their opinion about him, turning to personal insults and using obscene language.

For example, California Assemblywoman Lorena S. Gonzales, who provides strong support for fossil fuels, posted “F*ck Elon Musk” on Twitter. This behavior is unacceptable for a government official and indicates serious problems in the apparatus of the state, which needs change. It is this behavior that has become one of the reasons why the business, which brought billions of dollars in revenue to the state treasury every year, is partially moving its activities elsewhere.

© 2021, Eva Fox | Tesmanian. All rights reserved.


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About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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