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Electric carmaker Tesla is to move its headquarters from California to Texas, chief executive Elon Musk has said.

The announcement comes after the billionaire tycoon was embroiled in a row with West Coast politicians over their handling of the coronavirus crisis.

Tesla will be the latest in a number of firms, including Hewlett Packard and Toyota, to relocate to the Lone Star State, which has cheaper labour and less strict regulations, while California has relatively high taxes and living costs.

Elon Musk
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Elon Musk moved to Texas from California last year

Speaking at the company’s annual general meeting, held at the Texas car factory in Austin, Mr Musk said the California plant in Fremont was “jammed” and staff found it difficult to afford houses in the area.

He said: “We’re taking it as far as possible, but there’s a limit to how big you can scale it in the Bay Area.

“Just to be clear, though, we will be continuing to expand our activities in California. This is not a matter of leaving California.”

He pointed out the firm plans to increase output from its sites in California and Nevada by 50%.

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Mr Musk himself moved to Texas from California in December to focus on the electric carmaker’s giant new manufacturing complex and his SpaceX rocket company, which has a launch site at the state’s southern tip.

The tech entrepreneur has also had a fractious relationship at times with California, having previously threatened to move Tesla headquarters and future projects to Texas during a row over the closure of the Fremont factory during the COVID-19 pandemic.

The Tesla factory is seen in Fremont, California,
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The Tesla factory in Fremont is ‘jammed’, says Mr Musk

At the meeting, he showed off a slide of a cowboy-style belt buckle emblazoned with “Don’t Mess With T” – the T in the style of the Tesla logo.

The phrase is based on a well-known Texas anti-littering campaign – Don’t Mess with Texas.

While welcoming Tesla’s announcement that it will expand production in Fremont, business leaders highlighted the headquarters move as the latest sign of the region’s ongoing issues.

Jim Wunderman, president and chief executive of the Bay Area Council business group, said: “Mr Musk’s announcement highlights yet again the urgency for California to address our housing affordability crisis and the many other challenges that make it so difficult for companies to grow here.”

Last year, tech giant Oracle decided to move its headquarters from Silicon Valley to Austin, pointing out the move would give its employees more flexibility about where and how they work.

Tesla factory
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The electric carmaker is building a giant new factory in Austin, Texas

At the AGM, Mr Musk also pointed to the company’s record vehicle deliveries this year, while noting that global supply-chain disruptions that have led to a shortage of computer chips remain a challenge.

He said: “It looks like we have a good chance of maintaining that into the future. Basically, if we get the chips, we can do it.”

As a result, production of Tesla’s angular Cybertruck pickup is not likely to begin before the end of 2022, he said, estimating the company would reach “volume” production of the vehicle in 2023.

“We should be through our severest supply chain shortages in ’23,” he said.

“I’m optimistic that will be the case.”

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Tesla said last week that it delivered 241,300 electric vehicles in the third quarter, even as it wrestled with the shortage of computer chips that has hit the entire car industry.

So far this year, Tesla has sold around 627,300 vehicles. That puts it on pace to soundly beat last year’s total of 499,550.

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End to longest US government shutdown one step closer – as Democrats face backlash

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End to longest US government shutdown one step closer - as Democrats face backlash

An end to the longest US government shutdown in history is one step closer after Senate Democrats broke with their party to strike a deal with the Republicans.

Senators backed by 60 votes to 40 legislation to end the impasse, though it still needs approval from the House of Representatives – and sign-off by President Donald Trump.

He has indicated he is happy with the agreement, though, which would restore funding for federal agencies that have gone without since 1 October.

It would also prevent any further layoffs until 30 January, but does not satisfy Democrat demands regarding health care insurance for millions of Americans.

Attractions across the US have been closed. Pic: AP
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Attractions across the US have been closed. Pic: AP

Health care was at the heart of the dispute that led to the shutdown.

The Democrats had refused to support a Republican budget plan unless tax credits that made medical insurance cheaper for millions of people were renewed.

The willingness of eight moderate Democrats to break the Senate deadlock without that guarantee has provoked fury among many in the party.

Some are now calling on Senate Minority Chuck Schumer to be replaced because he is “no longer effective”.

California Governor Gavin Newsom – regarded as a contender for the 2028 Democratic presidential nomination – said: “Pathetic. This isn’t a deal. It’s surrender.”

Read more US news:
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The shutdown has caused extensive travel disruption. Pic: Reuters
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The shutdown has caused extensive travel disruption. Pic: Reuters

On Monday morning, Republican Senate Majority Leader John Thune had urged politicians to work together to break a stalemate that had lasted for more than 40 days.

He said: “The American people have suffered for long enough. Let’s not pointlessly drag this bill out.”

The shutdown began on 1 October – with 670,000 federal government employees furloughed or left with no choice but to work without pay.

SNAP, a food aid programme used by 42 million Americans, has been frozen – with thousands of flights cancelled at dozens of major airports.

Mr Trump has told air traffic controllers to get back to work, threatening anyone who doesn’t with “docked” pay.

The funding package now heading to the House of Representatives only lasts through to 30 January, making it a relatively short-term solution that will require further negotiation.

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Trump threatens to sue BBC for $1bn over speech edit

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Trump threatens to sue BBC for bn over speech edit

Donald Trump has threatened to sue the BBC for $1bn over edits the organisation made last year to one of his speeches.

The organisation has been engulfed in a crisis, forced to apologise on Monday after two of its most senior figures, including the director-general, resigned on Sunday night.

The defamation claim centres around a BBC Panorama documentary, which aired October 2024 and showed an edited speech made by Mr Trump before the attack on the US Capitol on 6 January 2021, in which he appeared to tell his supporters he was going to walk with them to the US Capitol and “fight like hell”.

In a letter dated 9 November, Florida-based lawyer Alejandro Brito set the BBC a deadline of 10pm UK time on Friday to respond, outlining three demands:

• Issue a “full and fair retraction” of the documentary
• Apologise immediately
• “Appropriately compensate” the US president

He told the BBC it needed to “comply” or face being sued for $1bn.

A BBC spokesperson said: “We will review the letter and respond directly in due course.”

‘Error of judgement’

On Monday, BBC chairman Samir Shah, one of the most senior figures still standing, apologised for the “error of judgement” in editing the video.

In a letter to the Culture, Media and Sport Committee of MPs, Mr Shah said Mr Trump’s speech was edited in a way that gave “the impression of a direct call for violent action”.

“The BBC would like to apologise for that error of judgement,” he added.

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BBC admits Trump documentary ‘mistake’

Director-general and head of BBC News resign

Concerns about the edited speech first came to light in a leaked memo from Michael Prescott, a former journalist and independent adviser to the BBC’s Editorial Guidelines and Standards Board.

As a result, BBC director-general Tim Davie and BBC News chief Deborah Turness announced their resignations on Sunday evening, saying in emails to staff that mistakes had been made.

Mr Davie will address an all-staff meeting on Tuesday. While on her way into the Broadcasting House on Monday morning, Ms Turness defended the corporation, rejecting accusations of institutional bias.

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Trump’s claims of ‘corrupt’ BBC journalists rejected

Downing St stands by BBC – but chancellor says ‘lessons to be learned’

A spokesperson for the prime minister told reporters on Monday that the BBC wasn’t corrupt or institutionally biased.

Instead, they said it had a “vital role” to play in the modern age, but needed to ensure it acted “to maintain trust and correct mistakes quickly when they occur”.

Chancellor Rachel Reeves also stood by the corporation, but said that “lessons do need to be learned”.

‘Nothing but an apology’

Veteran broadcaster and former BBC presenter Jonathan Dimbleby told Sky News, however, that the organisation owed the US president nothing more than an apology.

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‘These are very serious times for the BBC’

But former legal correspondent for the BBC Joshua Rozenberg also told Sky News that he believed the corporation would “very likely” consider settling with Trump.

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BBC ‘very likely to consider settling with Trump best thing to do’

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‘Teflon Tim’ rode out several BBC controversies – but now he’s come unstuck

Mr Trump’s attack on the BBC is the latest in a long string of multibillion-dollar battles he’s engaged with various media institutions.

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Trump hosts Syrian president al Sharaa at historic Oval Office meeting

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Trump hosts Syrian president al Sharaa at historic Oval Office meeting

Former al Qaeda commander and now Syrian leader Ahmed al Sharaa has been welcomed by Donald Trump to the White House.

It was the first visit to the Oval Office by a Syrian head of state since the country gained independence in 1946.

Mr Sharaa, 43, who once had a $10m US bounty on his head, led rebel forces that overthrew dictator Bashar al-Assad last December, and was named interim leader in January.

The US president called Mr al Sharaa a “very strong leader” after their meeting and suggested the US would work to help the country succeed.

“He comes from a very tough place,” Mr Trump said, adding Mr al Sharaa is a “tough guy” and “I like him”.

Mr Sharra has “had a rough past”, but added, “we’ve all had a rough past”, he added.

Trump shared a picture of the two leaders on social media. Pic: Truth Social
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Trump shared a picture of the two leaders on social media. Pic: Truth Social

Mr Trump has become one of the Syrian president’s more enthusiastic backers, considering the nation of strategic importance.

He didn’t provide any policy details about the meeting, but said “we’ll do everything we can to make Syria successful because that’s part of the Middle East”.

Read more: Why this meeting is a big deal

Trump and al Sharaa appeared to get on well. Pics: AP
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Trump and al Sharaa appeared to get on well. Pics: AP

‘What the hell are we doing?’

Mr al Sharaa was greeted by a cheering crowd of supporters, some waving Syrian flags, upon his arrival on Monday.

But not everyone was overjoyed at the historic meeting.

Far-right activist Laura Loomer, a self-proclaimed “Islamophobe” who wields influence in Mr Trump’s MAGA movement, posted on X that Mr al Sharaa was “the ISIS ‘President’ of Syria”.

“What the hell are we doing?” she wrote of his White House visit.

Days before the meeting, Mr Trump told reporters “a lot of progress has been made” on Syria and Mr al Sharaa was “doing a very good job”.

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al Sharaa waves as he greets supporters outside the White House. Pics: AP
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al Sharaa waves as he greets supporters outside the White House. Pics: AP

Last week, the US voted to lift a series of sanctions on the Syrian president and members of his government.

Mr al Sharaa is hoping for a permanent repeal of sanctions placed on Syria for allegations of human rights abuses by Assad’s government and security forces – but congressional action would be needed for a permanent repeal.

Mr Trump and Mr al Sharaa first met in May in Saudi Arabia. At the time, the US president described Mr al Sharaa as a “young, attractive guy. Tough guy. Strong past, very strong past. Fighter”.

Monday’s meeting came after Syria launched raids against Islamic State cells.

It was the first official encounter between the US and Syria since 2000, when then president Bill Clinton met Hafez Assad.

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