Elon Musk to move Tesla headquarters from California to Texas
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 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%.
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 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.
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.
Thousands of people gathered in various cities across the US as protests against Donald Trump and Elon Musk took place in all 50 states on Saturday.
Around 1,200 demonstrations were planned in locations including Washington DC, New York City and West Palm Beach, Florida – just miles away from where the US president has this weekend played golf.
The “Hands Off!” protests were against the Trump administration’s handling of government downsizing, human rights and the economy, among other issues.
In Washington DC, protesters streamed on the grass in front of the Washington Monument, where one person carried a banner which read: “Make democracy great again.”
Thousands gathered in Washington DC to rally against various Trump policies. Pic: AP
Pic: AP
Another protester took aim at Mr Trump‘s handling of Russia and Ukraine, with a placard that read: “Stop Putin’s puppets from destroying America.”
Tesla boss Mr Musk also featured on many signs due to his role in controversial government cuts as head of the newly created Department of Government Efficiency (DOGE).
Demonstrators in NYC. Pic: AP
People marching in Atlanta, Georgia. Pic: Reuters
A rally in Vermont. Pic: The Brattleboro Reformer via AP
Terry Klein, a retired biomedical scientist, said she drove to the rally to protest Mr Trump’s policies on “everything from immigration to the DOGE stuff to the tariffs this week, to education”.
“I mean, our whole country is under attack, all of our institutions, all the things that make America what it is,” she added.
A drone view of the protest at the Utah State Capitol building. Pic Reuters
A protester sports a Handmaid’s Tale costume. Pic: Reuters
Pic: Reuters
Some at the various protests carried Ukrainian flags, while others sported rainbow attire and waved rainbow flags in support of the LGBTQ+ community.
Other protesters wore Palestinian keffiyeh scarves and carried “Free Palestine” signs.
Thousands marched in New York City’s midtown Manhattan and in Boston, Massachusetts, while hundreds gathered in the sunshine outside the Utah State Capitol building in Salt Lake City, and in the rain outside the Statehouse in Columbus, Ohio.
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Mr Trump – who shook financial markets with his tariffs announcement this week – spent the day in Florida, playing a round of golf before returning to his Mar-a-Lago residence.
People protest in Manhattan. Pic: Reuters
Activists in Palm Beach Gardens, Florida. Pic: AP
Some four miles from Mar-a-Lago, more than 400 people gathered – and drivers honked their horns in support of protesters who held up signs including one which read: “Markets tank, Trump golfs.”
The White House has said Mr Trump plans to go golfing again on Sunday.
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