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 coronaviruscrisis.
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.
Image: 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.
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“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-19pandemic.
Image: 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.
Image: 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.
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.
The deployment of National Guard soldiers on to the streets of LA by Donald Trump was always deeply controversial – and now it has been deemed illegal, too, by a federal judge.
In late spring in Los Angeles, I observed as peaceful protests against immigration raids turned confrontational.
I watched as Waymos – self-driving cars – were set alight and people waving flags shut down one of the city’s busiest freeways. I saw government buildings spray-painted with anti-government sentiment and expletives. Some people even threw bottles at police officers in riot gear.
In exchange, I saw law enforcement deploy “flash bang” crowd control devices and fire rubber bullets into crowds, indiscriminately, on occasion.
Image: Mounted Los Angeles police officers disperse protesters earlier this summer. Pic: San Francisco Chronicle/AP
Image: A person reacts to non-lethal munitions shot in Los Angeles.
Pic: Reuters
But Trump sent them in anyway, against the wishes of the local government. LA mayor Karen Bass condemned the deployment as an act of political theatre and said it risked stoking tensions.
The language Trump used was, arguably, inflammatory, too. He described LA as an “invaded” and “occupied city”. He spoke of “a full-blown assault on peace”, carried out by “rioters bearing foreign flags with the aim of continuing a foreign invasion of our country”.
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Trump: ‘We will liberate Los Angeles’
It didn’t reflect reality. The size of the protests were modest, several thousand people marching through a handful of streets in downtown LA, a city which spans 500 square miles and has a population of almost four million.
The majority of the soldiers simply stood guard outside government buildings, often looking bored. Some of them are still here, with nothing to do. Now a judge has ruled that the operation was illegal.
US District Judge Charles Breyer said the Trump administration “used armed soldiers (whose identity was often obscured by protective armour) and military vehicles to set up protective perimeters and traffic blockades, engage in crowd control, and otherwise demonstrate a military presence in and around Los Angeles”.
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Marines head to Los Angeles
In a scathing judgement, he effectively accused the White House of turning National Guard soldiers and marines into a “national police force.”
That breaches a law from 1878, barring the use of soldiers for civilian law enforcement activities.
It is a blow to what some view as the president’s ambition to federalise Democrat-run cities and deploy the National Guard in other states around the country. He had threatened to send troops to Chicago as part of an initiative he says is cracking down on crime, widening the use of National Guard troops, as seen on the streets of Washington DC.
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The fightback against immigration raids in LA
But since this judge ruled that the deployment of National Guard and marines to LA in June was unlawful in the way it unfolded, Trump may have to be inventive with his rationale for sending soldiers into other US cities in the future.
This legal judgement, though, is being appealed and may well be overturned. Either way, it is unlikely to stem the president’s ambition to act as national police chief.
A strike on what the US called a Venezuelan gang’s drug-carrying vessel killed 11 people, Donald Trump has said.
Speaking at a news conference at the White House, the US president told reporters: “We just, over the last few minutes, literally shot out a boat, a drug-carrying boat, a lot of drugs in that boat.
“And there’s more where that came from. We have a lot of drugs pouring into our country, coming in for a long time.”
Secretary of State Marco Rubio then added: “These particular drugs were probably headed to Trinidad or some other country in the Caribbean.
“Suffice to say the president is going to be on offence against drug cartels and drug trafficking in the United States.”
Mr Trump later posted a video on Truth Social of a vessel exploding, in what appeared to mark the first US military operation in the southern Caribbean to crack down on drug cartels.
The president said on social media that the US military had identified the crew as members of Venezuelangang Tren de Aragua, which was designated a terrorist group in February.
He then alleged that Tren de Aragua is being controlled by Venezuela’s President Nicolas Maduro, which the country denies.
Venezuelan officials have repeatedly said that Tren de Aragua is no longer active in their country after they dismantled it during a prison raid in 2023.
The US last month doubled its reward for information leading to the arrest of Mr Maduro to $50m, accusing him of links to drug trafficking and criminal groups.
The US has deployed warships in the southern Caribbean in recent weeks.
Seven warships, along with one nuclear-powered fast-attack submarine, are either in the region or expected to arrive soon, carrying more than 4,500 sailors and Marines.
Officials have said that the US military has also been flying P-8 spy planes over international waters in the region to gather intelligence.
Mr Maduro said on Monday that he “would constitutionally declare a republic in arms” if Venezuela were attacked by US forces deployed in the Caribbean.