Tesla Inc. is moving its corporate headquarters to Austin, Texas. However, Texas is home to several tech giants including Apple, Dell, Oracle, etc. Dell Technologies has originated from the city, Apple and Facebook also have a large presence in Austin. Besides that, Oracle also announced last year that it is shifting its headquarters from Silicon Valley to Austin. Just like all these technology companies, Elon Musk’s carmaker company is also going to establish a new rule in Texas.
Tesla Inc. to Shift Corporate Headquarters to Texas
In its recent statement, Tesla Inc. announced that they are setting up their corporate headquarters in Austin, Texas. The company is planning to set up a new factory for their model Y and its upcoming cyber truck.
However, the company has operated from California for the past 18 years and it was time for a change. CEO Elon Musk announced the relocation of the company’s headquarters on Thursday in a shareholder’s meeting. Moreover, the carmaker company is not the first in line to do the relocating business. Several other companies like Dell, Apple, Facebook, Oracle, etc. have gone through this phase.
Why are they Relocating?
Ever since it was founded in 2003, Palo Alto, the Silicon Valley suburb was home to Tesla Inc. The area is also famous for its renowned Stanford University and several venture capital organizations. However, Elon Musk started his brand as a startup, and here he is now, hailing as the world’s richest man. With name, fame, and recognition, comes responsibilities. Although the company had no issues in California, Musk felt that it was always good to expand the territory. The relocation news comes after growing distress among some companies and the states’ policies. Moreover, the recent abortion law is playing a huge part in the company’s relocation to Texas. Besides that, efforts to restrict voter rights are also a major reason.
Austin Mayor Welcomes Musk and his Company in Texas
Steve Adler, Austin’s Mayor, said that he welcomes Tesla Inc. with open hearts in Texas. Besides that, he stated that the company is a clean manufacturing brand that will bring middle-skill jobs to the state. However, the carmaker joins several other companies with operations in Texas including Dell and Apple. John Boyd, a corporate relocation consultant from New Jersey mentioned that this is one of the newest economic development trophies. The relocation will attract tech talent in the state and also add to the company’s consumers.
What did Elon Musk Say about Relocating Tesla Inc. in Texas?
Elon Musk has clearly stated that he is not abandoning California. Although he is relocating Tesla Inc. in Texas, he will continue to expand his work in Nevada. The relocation is just an expansion, not an abandonment. However, California’s Governor and other delegates have not yet responded to the news.