Tuesday, September 27, 2022
News As Promised: Tesla Moves HQ From California to Texas

As Promised: Tesla Moves HQ From California to Texas

Construction of Tesla’s assembly plant in Texas will now include a new head office

  • Musk had threatened to move his headquarters following a spat with California officials last year.

  • Musk also relocated to Texas helping him save big on income taxes.

  • The announcement was made during a meeting at the new Austin plant. 

Tesla moving its headquarters to Texas from California is both a financial and retaliatory move. Early on in the pandemic, Elon Musk had threatened to move from Los Angeles following a disagreement with the state’s temporary COVID-related restrictions.

2020 Tesla Model Y | Photo: Tesla

Shifting the car company’s HQ to Texas will not directly impact Tesla’s activities in California. Musk explains:

“To be clear we will be continuing to expand our activities in California,” Musk said. “Our intention is to increase output from Fremont and Giga Nevada by 50%. If you go to our Fremont factory it’s jammed.” According to CNBC, he added: “It’s tough for people to afford houses, and people have to come in from far away…. There’s a limit to how big you can scale in the Bay Area.”

Construction of the Austin, TX. plant is ongoing. Full production capability will not be reached immediately once it is completed. The source story notes that it takes Tesla less time to build a new facility than it does to reach high-volume production.

Finally, Musk is unlikely to regret the move. California has some of the highest personal income taxes on the rich in the US; Texas does not levy personal income taxes.

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Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai


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