Tesla says goodbye to California and howdy to Texas

Tesla Texas plant is nearing completion and it will make Model Y and Cybertrucks.
By : HT Auto Desk
| Updated on: 02 Dec 2021, 09:38 AM
Tesla's shifting of headquarter comes as a major move.
Tesla's shifting of headquarter comes as a major move.
Tesla's shifting of headquarter comes as a major move.
Tesla's shifting of headquarter comes as a major move.

Electric vehicle major Tesla has announced that it is moving the auto manufacturer's headquarter to Texas from California. The EV manufacturer has informed US Securities and Exchange Commission on Wednesday that its corporate headquarter will be the Gigafactory Texas in Austin from now on.

(Also Read: Tesla Cybertruck will be 'an insane technology bandwagon', says CEO Elon Musk)

The move is pretty significant as it comes after Tesla CEO Elon Musk's clash with public health officials of Alameda Country, California during the early days of the Coronavirus pandemic.

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Also, Tesla's move to shift its headquarter to Texas comes after Elon Musk's clash with the US officials regarding tax payment. Musk is currently the richest person in the world, worthing around $287 billion. Unline California, Texas is one of the few states that levy no personal income tax on citizens.

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Musk already announced the plan to shift Tesla's headquarter from California to Texas at the company's annual shareholder meeting in October this year. However, he didn't give any timeline.

He said that the dearth of affordable housing in the San Francisco Bay Area and long commute times were among the factors limiting the automaker's ability to expand. He also said that Tesla will maintain a strong foothold in the region. Interestingly, he himself moved to Texas in 2020 and spends much of his time near Brownsville, where SpaceX is building Starship. Hence, moving Tesla's headquarter will allow Musk to oversee operations of both SpaceX and Tesla more keenly.

In the meantime, Tesla's Austin factory in Texas is nearing completion. Upon completion, this plant will manufacture Tesla Model Y and the forthcoming much-awaited Tesla Cybertruck as well.

First Published Date: 02 Dec 2021, 09:38 AM IST
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