Tesla is relocating its headquarters from Palo Alto, California to Austin, Texas, CEO Elon Musk announced during a shareholder meeting at Tesla’s vehicle assembly plant Thursday.
Musk said the move doesn’t mean production will be reduced in California.
"To be clear we will be continuing to expand our activities in California," he said. "Our intention is to increase output from Fremont and Giga Nevada by 50%. If you go to our Fremont factory it's jammed."
Musk said the move from California is because "it's tough for people to afford houses, and people have to come in from far away....There’s a limit to how big you can scale in the Bay Area."
Musk himself moved to the Austin area in late 2020.
The date for the plant’s opening is unclear at this time and the CEO said it would be some time before the new facility reaches full production.
Tesla was founded in California in 2003 and has had support from organizations such as California Air Resources Board, California Energy Commission, and California Alternative Energy and Advanced Transportation Financing Authority.
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