The Tesla CEO on Thursday announced that the world’s most valuable car company will move its headquarters from Palo Alto, Califonia to Texas.
The decision was made after the annual shareholder meeting citing some drawbacks. Musk said that there is a “limit to how big you can scale in the Bay area,” noting that affordable housing and commute times played a role in the decision, CNN reported.
“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 said, per CNBC.
The Austin factory is decided to be the headquarters of Tesla which is approximately 5 mins away from the airport and 15 mins from the Downtown area, Musk said.
Musk also made it clear that Company is not leaving the Golden State altogether but will continue to expand and he announced production expansions at facilities in both Fremont, Calif., and Nevada.
“To be clear, we will be continuing to expand our activities in California,” Musk said. “Our intention is to increase output from Fremont and Giga Nevada by 50 percent. If you go to our Fremont factory it’s jammed,” he added.
The world second richest person previously announced its disagreement with certain policies in Califonia including the Covid-19 restrictions, CNBC reported.
Meanwhile, Musk recently relocated to Austin, Texas citing tax benefits which lowered his personal tax burdens, and of course, it gives him easy access to SpaceX’s launching site in Boca Chica, Texas.