Tesla headquarters moves to Texas

Released on 08.10. 2021

  • Elon Musk has moved from Los Angeles to Austin. Photo: Patrick Pleul

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Even at the height of the Corona restrictions in California, Elon Musk threatened that Tesla would move to Texas. Now the change is official. It’s cheaper to live there, says Musk. 2021

Austin (dpa) – Tesla is officially relocating its headquarters from Silicon Valley to Texas. CEO Elon Musk announced the move on Friday night at the electric car manufacturer’s general meeting. It has already been held at the new headquarters in the city of Austin, where Tesla is building a large plant.

Until now, Tesla had its headquarters in the heart of Silicon Valley, in Palo Alto. When making the announcement, Musk pointed out, among other things, that the cost of living for employees in Texas was lower. In the Californian home of large tech companies such as Apple, Google and Facebook, for example, houses are expensive and many take a long commute to work.

Many employees from tech Companies had used remote working in the corona pandemic to move from the greater San Francisco area to cheaper regions of the United States. But the SAP competitor Oracle and the IT group HPE also relocated their headquarters from Silicon Valley to Texas last year.

Musk already had a dispute about the closure last year of the main plant in Fremont near San Francisco threatened to relocate the company headquarters to Texas. He was dissatisfied with the fact that the factory was temporarily shut down due to corona restrictions. Musk himself also moved from Los Angeles to Austin.

Tesla’s activities in California are to be expanded at the same time, Musk now said. Among other things, the capacity in Fremont will be increased. However, there is little free space. In addition to the factory in Texas, Tesla is also building its first European plant in Grünheide near Berlin.

The Texas governor Greg Abbott welcomed Tesla via Twitter. At the same time, it is somewhat ironic that the company is moving to a US state, of all places, where it has to sell its cars in a roundabout way. Because direct sales without a car dealership are prohibited in Texas – and Tesla’s business model includes the fact that customers configure the cars online.

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