After less than two years in Texas, Tesla will move its engineering headquarters to Northern California, CEO Elon Musk announced Wednesday.
During a press conference alongside California Democratic Gov. Gavin Newsom, 55, the couple announced the electric vehicle maker would return to Palo Alto.
Musk, 51, moved Tesla to Austin, Texas, in the fall of 2021 because of tax breaks, cheaper labor costs and a battle between him and local health officials.
At the time, Musk was adamant about his desire to reopen a massive manufacturing plant in Fremont, which was argued against by the Alameda County Department of Public Health.
During his press conference on Wednesday, the tech CEO described the move as a “poetic transition,” while also stating that Tesla’s corporate headquarters will remain in Texas.
During a press conference with Democratic California Governor Gavin Newsom, the couple announced that the electric vehicle maker would return to Palo Alto.
Musk moved Tesla to Austin, Texas, in the fall of 2021 because of tax breaks, the cheaper cost of labor and a battle between him and local health officials.
At the time, Musk was adamant in his desire to reopen a massive manufacturing plant in Freemont, which was opposed by the Alameda County Department of Public Health.
Musk said Wednesday that he was excited to announce the move while standing next to the California governor.
“We are pleased to announce that Tesla’s global engineering headquarters will be right here at the former Hewlett-Packard headquarters,” Musk said.
However, not all of Tesla’s operations will be centered in the Golden State, as the company’s corporate headquarters will remain in Texas.
When Musk moved Tesla to Texas, he also moved into his own residence.
Texas is known for not having a state personal income tax, which might have been one of the biggest draws for the chief executive, who is estimated to be worth $182 billion.
The move will also bring Musk closer to Twitter’s San Francisco headquarters. Musk bought the social media app for more than $40 billion in the fall.
The distance between Palo Alto and San Francisco is less than 30 miles.
During their joint conference yesterday, Governor Newsom applauded Musk and Tesla’s decision to return to the Golden State.
“Tesla is a California company,” Governor Newsom said. It started here first.
‘We say about our state, the future happens here first. We are America’s next attraction,” Newsom continued.
Tesla will return to Palo Alto, California with its engineering headquarters. The company’s corporate headquarters will remain in Austin, Texas.
Musk said Wednesday that he was excited to announce the move while standing next to the California governor.
“We are pleased to announce that Tesla’s global engineering headquarters will be right here at the former Hewlett-Packard headquarters,” Musk said.
A sign marks the entrance to the Tesla Motors Inc. headquarters in Palo Alto, California
Charging stations are seen at Tesla’s corporate headquarters on January 3, 2023
“Tesla is a California company,” Governor Newsom said. ‘It started here first’
Musk moved Tesla from Palo Alto, California to Austin, Texas in 2021
Tesla received its own border patrol lane at the Texas-Mexico gate
During Wednesday’s press conference, Musk did not specifically address the reason for the move west, however, tax incentives could be the reason.
Newsom and the state of California are focused on electricity and have supported Tesla over the years.
The governor said that bringing Tesla back was critical for the state to become the leader in auto manufacturing.
“We can claim 44 core manufacturing companies in the EV space, but none that dominate like Tesla,” Newsom said.
Overall, California is the largest automaker in the United States.
The factory in Fremont, California is expected to solidify California’s position, as Musk predicts some 600,000 vehicles will be built at the site over the next year.
The governor said that bringing Tesla back was critical for the state to become the leader in auto manufacturing.
Newsom and Musk were friendly at times during the meeting, even joking about their decades-long “relationship.”
Newsom and Musk were friendly at times during the meeting, even joking about their decades-long “relationship.”
Musk joked that Newsom, whose state has placed significant emphasis on going electric, likely put down a $100,000 deposit toward his first Tesla in 2007.
Newsome joked that he only bought his Tesla when he “had the money” to do so, saying that he and Musk had similar net worths at the time.
“Your (net worth) went negative and I got a pension, so eat your heart out,” Newsom laughed.
