Telsa will move its headquarters to Austin, Texas, Elon Musk announced Thursday night. Speaking at Tesla’s annual shareholders meeting, Musk said the decision is necessary due to space limitations in California. However, he stressed that Tesla would not withdraw from the Golden State entirely.  “We will continue expanding our activities in California,” Musk said during the event, which was held at Tesla’s Gigafactory jobs in Austin. “This is not a matter of Tesla leaving California.” 

Musk said that Tesla wants to “increase output” from its Fremont factory and its Gigafactory in Nevada by 50%, but it’s running out of room in California. “If you go to our Fremont factory, it is jammed,” Musk said. “When we first went in there, it was like…tiny us and giant factory, and now it’s like spam in a can.” 

Musk also argued that it’s “tough for people to afford houses [in California], and a lot of people have to come in from far away.” Tesla HQ is currently in Palo Alto, where the median home sale price is $3.6 million, according to Redfin. Musk said Austin is ideal given its close proximity to the airport, downtown, and the Colorado River. “We’re going to create an ecological paradise.” The median home sale price in Austin is $549,000, Redfin says, but don’t expect it to stay that way. 

 Musk didn’t offer details on what the HQ switch will mean for California-based employees. The Austin factory workers are still under construction. “We’ll start production this year, and we’ll deliver some cars from Giga Texas this year, but we won’t reach high-volume production until probably the end of next year,” Musk said today. 

Musk has had an irritable relationship with California lately. He clashed with officials in May 2020 over a factory reopening despite COVID-19 jobs closures, prompting a lawsuit that he later withdrew. He later tweeted that Tesla would move its headquarters to Texas, although it had only moved to the area at the end of the years. 

 Source: PC Magazine