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A man drives his Tesla car as the Starship SN8 of SpaceX is seen behind, days before a test launch of the company’s new super heavy-lift Starship rocket from their facilities in this small town of Boca Chita, Texas, December 4, 2020.
Gene Blevins | Reuters

Tesla is moving its headquarters from Palo Alto, California, to Austin, Texas, CEO Elon Musk announced at the company’s shareholder meeting on Thursday.

The meeting took place at Tesla’s vehicle assembly plant under construction outside of Austin on a property that borders the Colorado River, near the city’s airport. 

However, the company plans to increase production in its California plant regardless of the headquarters move.

“To be clear we will be continuing to expand our activities in California,” Musk said. “Our intention is to increase output from Fremont and Giga Nevada by 50%. If you go to our Fremont factory it’s jammed.”

But, he added, “It’s tough for people to afford houses, and people have to come in from far away….There’s a limit to how big you can scale in the Bay Area.”

Regarding the plant underway in Austin, he noted that it would take some time to reach full production even after it’s completed.

“In Tesla-land it takes longer to build the factory than to get to high volume production once the factory is built,” Musk said. For example, Tesla’s Shanghai plant was built in 11 months, but took a year to reach high volume production. He expects Tesla’s new plant near Austin will follow Shanghai’s example.

Musk’s growing dissatisfaction with California has been apparent for some time. In April 2020, on a Tesla earnings call, Musk lashed out at California government officials calling their temporary Covid-related health orders “fascist” in an expletive-laced rant.

Later, Musk personally relocated to the Austin area from Los Angeles, where he had lived for two decades.

Doing so enabled Musk, who is also CEO of aerospace company SpaceX, to reduce his personal tax burden and be closer to a SpaceX launch site in Boca Chica, Texas.

Tesla’s board granted Musk an executive compensation package that can earn him massive stock awards based on the automaker’s market cap increases and some other financial targets. If he sells options set to expire in 2021, he could generate proceeds of more than $20 billion this year, according to InsiderScore.

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

Tesla is not the first company to its headquarters out of California to Texas. Oracle and Hewlett Packard are among the tech giants who decided to make that move last year, for example.

Texas has been actively recruiting companies via its Texas Economic Development Act offering tax breaks to put new facilities in the state. Austin, with a top tech university and cultural events like South by Southwest, is a draw for tech employers.

Making such a move is not particularly burdensome, explained business attorney Domenic Romano, managing partner of Romano Law in New York City. A Delaware business that has operated as a “foreign” corporation with headquarters in California, like Tesla has, could relocate its domicile by establishing a facility in a new state, hiring there. and relocating key employees.

They would not have to shut down operations in other states, although they typically do pare them back.

“From a legal perspective, there’s less of a regulatory burden in Texas,” Romano said. “It’s a more business- and employer -riendly state in many ways. You have to jump through far fewer hoops in Texas or Florida as an employer than you do in California in terms of reporting requirements and more.”

Texas Gov. Greg Abbott said the Tesla CEO supported his state’s “social policies” as well. However, Elon Musk declined to weigh in on Texas’ restrictive new abortion law after Abbott made that claim.

“In general, I believe government should rarely impose its will upon the people, and, when doing so, should aspire to maximize their cumulative happiness,” Musk wrote on Twitter at that time. “That said, I would prefer to stay out of politics,” said Musk.

Tesla has generally garnered a huge amount of support from the state of California since it was founded there in 2003. It has enjoyed grant funding, tax breaks, incentives and favorable policies from the likes of the California Air Resources Board, California Energy Commission and California Alternative Energy and Advanced Transportation Financing Authority, among others.

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Amazon gets FAA approval for new delivery drone as it begins tests in Arizona

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Amazon gets FAA approval for new delivery drone as it begins tests in Arizona

Amazon said Tuesday it received regulatory approval to begin flying a smaller, quieter version of its delivery drone, the latest step in its long-running efforts to get the futuristic program off the ground.

The company unveiled the new drone, called the MK30, in November 2022. It said then that the MK30, in addition to the other changes, would fly through light rain and have twice the range of earlier models.

Amazon said the Federal Aviation Administration’s approval includes permission to fly the MK30 over longer distances and beyond the visual line of sight of pilots. The agency granted a similar waiver for Amazon’s Prime Air program in May, though that was limited to flights in College Station, Texas, one of the cities where it has been conducting tests.

Alongside the FAA approval, Matt McCardle, head of regulatory affairs for Prime Air, said the company is starting to make drone deliveries Tuesday near Phoenix, Arizona. In April, Amazon said it planned to spin up drone operations in Tolleson, a city west of Phoenix, after it shut down an earlier test site in Lockeford, California. The company will dispatch the drones near one of its warehouses in Tolleson as it looks to integrate Prime Air more closely into its existing logistics network and further speed up deliveries.

An FAA spokesperson said the agency granted Amazon permission to conduct beyond visual line of sight deliveries in Tolleson on Oct. 31.

Amazon founder Jeff Bezos first unveiled plans for the ambitious service more than a decade ago, remarking at the time that the program could be up and running within five years. Despite Amazon investing billions of dollars into the program, progress has been slow. Prime Air encountered regulatory hurdles, missed deadlines and had layoffs last year, coinciding with widespread cost-cutting efforts by CEO Andy Jassy. The program also lost some key executives, including its primary liaison with the FAA and its founding leader. Amazon hired former Boeing executive David Carbon to run the operation.

It’s also encountered pushback from some residents in the cities where it’s trialing drone deliveries. Residents in College Station complained about the noise levels enough that it prompted the city’s mayor to mention the concerns in a letter to the FAA, CNBC previously reported. In response, Amazon executives told residents the company would identify a new drone delivery launch site by October 2025.

Amazon isn’t the only company trying to crack delivery by drone. It’s competing with Wing, owned by Google parent Alphabet, UPS, Walmart and a host of startups including Zipline and Matternet.

WATCH: How Amazon’s drone delivery program stacks up to competitors

Amazon drones make 100th delivery, lagging far behind Alphabet's Wing and Walmart partner Zipline

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Palantir shares jump 23% to record on uplifting guidance

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Palantir shares jump 23% to record on uplifting guidance

Palantir Technologies CEO Alex Karp appears on a Bloomberg television interview during the FoundryCon event in Palo Alto, California, on March 7, 2024.

David Paul Morris | Bloomberg | Getty Images

Palantir shares jumped 23% on Tuesday and headed for a record close after the data analytics software maker reported robust third-quarter results and issued uplifting revenue guidance.

The stock reached a high of $51.19, above the prior record of $45.14 reached last week. If the gain holds, it will mark the stock’s biggest jump since Feb. 6, when shares popped 30%.

Revenue climbed 30% to $726 million from a year earlier, topping the $701 million average analyst estimate, according to LSEG. Adjusted earnings per share of 10 cents beat the 9-cent average estimate.

Analysts at Deutsche Bank said in a report that “the beat was driven by better-than-anticipated US Government performance,” boosted by demand for artificial intelligence tools.

“Palantir is among a handful of infrastructure software companies that have started to meaningfully monetize generative AI, where its competitive positioning benefits from longtime investment and deep expertise in complex data integration, and particularly its reputation for data security built into its ontology,” the analysts wrote.

Net income of $143.5 million, or 6 cents per share, was up from $71.5 million, or 3 cents per share, in the same quarter a year ago. The company called for fourth-quarter revenue of $767 million to $771 million. Analysts surveyed by LSEG had been looking for $741.4 million.

Palantir is targeting more than $687 million in U.S. commercial revenue for the year, implying about 24% of the total.

Bank of America bumped its price target from $50 to $55 and maintained its buy rating.

“We continue to view the adoption of PLTR’s AI-enabled products and reach in its early days, as more companies realize the time, resource, and cost savings possible,” Bank of America analysts wrote in a note to investors. “In our view, Palantir’s moat as the differentiated agnostic AI-enabler is only growing with each new use-case carrying compounding unit economics.”

— CNBC’s Jordan Novet and Michael Bloom contributed to this report.

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OpenAI hires Meta’s former Orion head to lead its robotics efforts

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OpenAI hires Meta's former Orion head to lead its robotics efforts

Jaap Arriens | NurPhoto via Getty Images

The former head of Meta’s Orion augmented reality glasses initiative has joined OpenAI to lead the startup’s robotics and consumer hardware efforts.

Caitlin “CK” Kalinowski announced her new role Monday in a post on LinkedIn and X, writing, “In my new role, I will initially focus on OpenAI’s robotics work and partnerships to help bring AI into the physical world and unlock its benefits for humanity.”

OpenAI has gained popularity for its viral chatbot, ChatGPT, but the hiring underscores its apparent efforts to move into building and selling hardware. Former Apple exec Jony Ive, who helped design some of Apple’s most iconic products from the iMac to the iPhone, has also partnered with OpenAI to create an AI device.

The announcement came the same day as that of OpenAI’s investment into Physical Intelligence, a robot startup based in San Francisco, which raised $400 million at a $2.4 billion post-money valuation. Other investors included Amazon founder Jeff Bezos, Thrive Capital, Lux Capital and Bond Capital.

The startup focuses on “bringing general-purpose AI into the physical world,” per its website, and it aims to do this by developing large-scale artificial intelligence models and algorithms to power robots. 

Before the new role at OpenAI, Kalinowski was a hardware executive at Meta for nearly two and a half years leading the company’s creation of Orion, previously codenamed Project Nazare, which it billed as “the most advanced pair of AR glasses ever made.” Meta unveiled its prototype glasses in September.

Before leading the Orion project, Kalinowski worked for more than nine years on virtual reality headsets at Meta-owned Oculus, and before that, nearly six years at Apple helping to design MacBooks, including Pro and Air models.

Kalinowski’s first day on the job at OpenAI is Tuesday, Nov. 5, per a LinkedIn post.

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