To Move Tesla Headquarters To Texas, Elon Musk Says

Tesla is going to Texas.

The electric car company will move its headquarters from Palo Alto, Calif. to the Lone Star State, company CEO Elon Musk announced Thursday.

“I’m excited to announce that we’re moving our headquarters to Austin, Texas,” Musk said during the shareholders meeting.

“Just to be clear, we will continue to expand our activities in California,” Musk said. “So that’s not the case, Tesla leaving California.”

The quirky billionaire said the company is still looking to increase production by 50 percent at its Fremont, California plant and Nevada plant. But expansion opportunities in the Golden State are limited and cost of living is a constraint, he said.

Musk clarified that the company is not leaving California.
David Zalubowski, File/AP

“It’s hard for people to buy a house and a lot of people have to come from far away,” Musk said. “We’re taking it as far as possible but there’s a limit to how big you can make it in the Bay Area.”

The Austin factory will be five minutes from the airport and 15 minutes from downtown, he said.

Musk, also the leader of SpaceX, recently moved himself from California to Texas. His announcement of the headquarters move comes a year after he first threatened to move Tesla to Texas or Nevada amid a fight with state health officials over COVID-19 restrictions.

The company was told it could not reopen its factory last year, when coronavirus shutdown measures were still in effect.

Tesla factory under construction in Texas.
The Tesla factory under construction in Texas on September 29, 2021.
Joe White/Reuters

“Frankly, this is the last straw,” Musk said on Twitter at the time. “Tesla will now immediately move its headquarters and future programs to Texas/Nevada. If we also keep Fremont manufacturing activity intact, it will depend on how Tesla is treated in the future.”

He then defied lockdown orders and ordered a resumption of production in California until officials agreed to reopen the company’s facilities with safety measures in place.


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