Payam Javan: Elon Musk announced on Friday that Tesla’s headquarters will relocate from California to Texas, where much of the electric vehicle maker’s manufacturing has already moved.
Musk made headlines in April 2020 when he lashed out at California politicians. Overstate and local COVID regulations, Tesla CEO Elon Musk termed them “fascist.” Production was later shifted to Austin, Texas. Musk, who had lived in California for many years, relocated to Texas.
According to KXAN-TV, on a Thursday earnings call with Tesla investors, the billionaire declared that the company would no longer be based in Palo Alto, California, but rather in Austin. He clarified that a facility in Fremont, California, will remain open and even increase production.
“I’m excited to announce we are moving our headquarters to Austin, Texas,” he said. “Our factory is five minutes from the airport, 15 minutes from downtown, and we’re going to create an ecological paradise because we’re right on the Colorado River. It’s going to be great.”
“To be clear, we will be continuing to expand our activities in California,” Musk said on the call, CNBC reported. “Our intention is to increase output from Fremont and Giga Nevada by 50 percent. If you go to our Fremont factory it’s jammed.”
Business attorney Domenic Romano told CNBC that the move makes a lot of sense.
“From a legal perspective, there’s less of a regulatory burden in Texas,” he said. “It’s a more business- and employer-friendly state in many ways. You have to jump through far fewer hoops in Texas or Florida as an employer than you do in California in terms of reporting requirements and more.”
Last year, Musk publicly scolded Alameda County on Twitter, threatening to relocate Tesla’s headquarters from Palo Alto. He described the news that county officials wanted the Fremont factory closed until June due to COVID “the final straw” and threatened to sue.
“Tesla is filing a lawsuit against Alameda County immediately. The unelected & ignorant ‘Interim Health Officer’ of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!” he tweeted.
“We have not given the green light. We have been working with them looking at some of their safety plans. But no, we have not said that it is appropriate to move forward,” Pan said of Tesla.
“Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen on how Tesla is treated in the future. Tesla is the last carmaker left in CA.” Musk threatened in another tweet.
Palo Alto Mayor Adrian Fine attempted to publicly calm the situation.
“I would be really sad and disappointed if @Tesla left @cityofpaloalto, and stand ready to help. I truly appreciate having a cutting-edge company based here, employing people, paying taxes, and helping to solve the climate crisis,” he tweeted.