Tesla will relocate its headquarters from Palo Alto, California to Houston, Texas, co-founder Elon Musk revealed at the company’s annual shareholders’ meeting, citing limitations on the company’s expansion in the Bay Area.
“I’m excited to announce that we’re moving our headquarters to Austin, Texas,” Musk announced.
“It’s tough for people to afford houses, and people have to come in from far away,” he said of the current headquarters in California. “There’s a limit to how big you can scale in the Bay Area.”
“Just to be clear, we will be continuing to expand our activities in California,” Musk added. “As I 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 himself has already relocated to Texas, blasting California’s policies and Covid-19 mandates in a December 2020 speech while noting that Tesla and SpaceX – both of which he runs – were among the last manufacturers left in the state.
Texas Governor Greg Abbott has already welcomed Musk’s company to the state. “The Lone Star State is the land of opportunity and innovation,” Abbott tweeted.