Tesla CEO Elon Musk announced at the company’s shareholders’ meeting Thursday that it will relocate its headquarters from Palo Alto, California to Austin, Texas.
The meeting was held at Tesla’s vehicle assembly plant Under construction A property near the airport in the city, outside Austin, adjacent to the Colorado River.
However, it plans to increase production at its California plant regardless of the relocation of its headquarters.
“For clarity, we will continue to expand our activities in California,” Musk said. “Our intention is to increase production from Fremont and Giganevada by 50%. When we go to the Fremont factory, we are stuck.”
But he added, “It’s hard for people to buy a home and people have to come in from afar … there is a limit to the size of the Bay Area.”
Regarding the plant underway in Austin, he said it would take some time to reach full production even after it was completed.
Mr Musk said Tesla would take less time to build a factory than it would reach mass production. For example, Tesla’s Shanghai plant was built in 11 months, but it took a year to reach mass production. He hopes Tesla’s new factory near Austin will follow the example of Shanghai.
The growing dissatisfaction of musk with California has been apparent for some time. April 2020, Tesla Earnings PhoneMusk called California government officials “fascists” in abusive rants for their temporary covid-related health orders.
Later, musk Personally relocated From Los Angeles, where he lived for 20 years, to the Austin area.
By doing so, Musk, who is also the CEO of the aerospace company SpaceX, was able to reduce his personal tax burden and get closer to the SpaceX launch site in Bokatika, Texas.
Tesla’s board of directors has granted Musk an executive compensation package that allows it to win large equity incentives based on increased market capitalization of automakers and other financial goals. According to InsiderScore, selling an option that expires in 2021 could generate more than $ 20 billion in revenue this year.
California imposes some of the country’s highest personal income taxes on wealthy residents, while Texas does not.
Tesla is not the first company headquartered in California to Texas. For example, Oracle and Hewlett-Packard are one of the tech giants who decided to make that move last year.
Texas is actively recruiting businesses through the Texas Economic Development Act and is offering tax breaks to set up new facilities in the state. Austin, which hosts prestigious tech colleges and cultural events like South by Southwest, is attractive to tech employers.
Domenique Romano, a business lawyer who manages Romano law in New York City, explained that such a move was not particularly burdensome. A Delaware company, operating as a California-based “foreign” company like Tesla, has set up a facility in a new state, hired it, and relocated key employees to relocate. You can relocate.
They usually bring them back, but they don’t have to stop working in other states.
“From a legal point of view, Texas has less regulatory burden,” Romano said. “In many ways, it’s a more business- and employer-friendly state. In terms of reporting requirements, Texas and Florida have to jump over far fewer hoops than California.”
Texas Governor Greg Abbott said Tesla CEO Supported his state Also “social policy”. However, Elon Musk refused to consider a new restrictive abortion law in Texas after Abbott made that claim.
“In general, I believe that governments rarely impose will on the people, and when they do, they should aspire to maximize their cumulative well-being,” Musk wrote on Twitter at the time. rice field. “That said, I want to get away from politics,” Musk said.
Tesla has generally received a great deal of support from California since it was founded in California in 2003. California Air Resources Board, California Energy Commission, California Alternative Energy and Advanced Transport Financial Institution, Above all.
— Clarification: This report has been updated to clarify how long it will take Tesla to build a factory and how long it will take to reach high-end production.
Tesla relocates headquarters from California to Texas
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