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Elon Musk announced Thursday during Tesla’s shareholder meeting that the luxury electric car maker’s headquarters will move from the California town of Palo Alto to Austin, in the State of Texas.
Musk justified the decision to move the headquarters due to the higher cost of living in the town located outside San Francisco and the difficulties to expand its facilities.
The businessman added that moving Tesla’s headquarters from Palo Alto will not mean reducing production at the automaker’s assembly plant in nearby Fremont.
Musk stated that it will continue to “expand” its activities in California and that Tesla wants to increase production at the Fremont plant, as well as the Nevada Gigafactory, by 50 %.
Tesla is building a new large plant in Austin for vehicle assembly and battery production.
The entrepreneur has on numerous occasions expressed his dissatisfaction with California and his criticism of the state, one of the strongholds of the Democratic Party, has only increased since the outbreak of the pandemic.
Musk went so far as to call the confinement orders issued early in the pandemic, in March and April 2020, “fascist” and “forced incarceration.”
In May 2020, Musk ignored orders from authorities in Alameda County, where the Fremont assembly plant is located, to close the facility to follow measures against the disease.
Musk had the support of then U.S. President Donald Trump, who wrote on Twitter that “California should let Tesla & Elon Musk open the plant, NOW. It can be done fast & safely!”
After what happened in the second quarter of 2020, Musk changed his residence from Los Angeles, where he had lived for about 20 years, to Austin. The move has also allowed Musk, one of the richest men in the United States, to significantly reduce what he pays in taxes.
In September, when asked about his support for Abbott and his decisions, Musk wrote on Twitter that “In general, I believe government should rarely impose its will upon the people, and, when doing so, should aspire to maximize their cumulative happiness. That said, I would prefer to stay out of politics.”