Tech billionaire Elon Musk has announced that Tesla is moving its headquarters from Palo Alto, California, to Austin, Texas, in Silicon Valley, where it is building a plant.
Tesla will continue to operate its electric vehicle factory in Fremont, California, and increase production there by 50 percent.
“I’m excited to announce that we’re moving our headquarters to Austin, Texas,” Musk said at an annual shareholders meeting on Thursday, The Washington Post reported.
Just to be clear, we will continue to expand our activities in California.
Musk himself moved to Texas last year, as SpaceX increased its presence in the southern tip of the country.
Tesla began building its next US Gigafactory outside Austin in 2020, and a new video from the project shows the space is already turning into a busy industrial area.
A video uploaded to YouTube by electric car enthusiast Jeff Roberts showed recorded factory progress from day one.
Initially, Tesla referred to the factory as the Cybertruck Gigafactory because the automaker planned to produce electric pickup trucks there.
However, Tesla planned to produce the Model Y at the first factory, and the company later changed its name to Gigafactory Texas.
Tesla also plans to set up battery cell production at the factory and make it an ecological swag for the masses.
In addition, a Tesla Gigafactory Texas Battery related job opening was recently posted by the electric car maker in its careers page. Automotive President Jerome Guillen shared the job listing via his official LinkedIn account.
Tesla is filing a lawsuit against Alameda County immediately. The unelected & ignorant “Interim Health Officer” of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!
— Elon Musk (@elonmusk) May 9, 2020
Despite moving its headquarters, Mr Musk also said that the company planned to increase output from its California and Nevada factories by 50%.
“This is not a matter of, sort of, Tesla leaving California,” he said.
Tesla is not the first company to move to Texas. In 2020, tech powerhouse Oracle announced it was moving from Silicon Valley to Austin.
Technology firm HP and carmaker Toyota have also moved their US headquarters to Texas from California.
California has stronger labour laws, and higher living costs and taxes than other states, while Texas is known for cheaper labour and less stringent regulation.
Mr Musk moved his home to Texas from California at the end of last year to focus on Tesla’s new car manufacturing plant there.
His SpaceX rocket company has a launch site in the southern tip of Texas.