Business & Investment

Elon Musk says Tesla will move its headquarters to Texas

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Tesla will relocate its headquarters from Palo Alto, California to Austin, Texas, but electric car makers will continue to expand their manufacturing capacity in the Golden State, CEO Earon Mask said on October 7.

Musk, who said he would move from California to Texas last year, did not show a timeline for the move when he spoke to shareholders at Tesla’s annual shareholders meeting.

In the early days of the coronavirus pandemic, Musk clashed with health authorities in the San Francisco Bay Area and attempted to enforce shelter-in-place orders. At that time, he threatened to move Tesla’s business to Texas or Nevada.

However, on October 7, Musk raised housing costs in the Bay Area, saying that many people had difficulty becoming homeowners, leading to long commute.

“We take it as much as we can, but there is a limit to how big we can scale it in the Bay Area,” he said on October 7. California. This is not a matter of leaving California. “

Musk emphasized plans to expand the company’s plant in Fremont, California, where Tesla’s Model S, X, Y and 3 vehicles are manufactured, in hopes of increasing production by 50%. bottom.

The announcement drew cheers and applause from a small audience at Tesla’s manufacturing plant in Austin. There, Musk made a live webcast remark.

While praising Tesla for announcing increased production in Fremont, Bay Area business leaders lamented the relocation of headquarters as the latest sign of ongoing problems in the region.

“Musk’s announcement reemphasizes the urgency of California to address the crisis of affordable housing and many other challenges that make it very difficult for businesses to grow here.” Said Jim Wonderman, President and Chief Executive Officer of the Bay Area Council, a business advocacy group.

Last year, technology giant Oracle Corp. decided to relocate its headquarters from Silicon Valley to Austin. The move will give employees more flexibility in where and how they work. Hewlett Packard Enterprise, one of the founders of Silicon Valley, has also announced that it will move to the Houston area.

At a meeting on October 7, Musk touted the company’s record vehicle deliveries this year, but noted that the global supply chain disruption that led to a shortage of computer chips remains a challenge.

“It looks like there’s a good chance we’ll keep it in the future,” he said. “Basically, once you get the tip, you can do it.”

As a result, production of Tesla’s square cybertruck pickups is unlikely to begin by the end of 2022, Musk said, and the company predicts that it will reach “mass production” of vehicles in 2023.

“We have to overcome the most serious supply chain shortage in 23 years,” he said. “I’m optimistic when that happens.”

Tesla said it delivered 241,300 electric vehicles in the third quarter, despite tackling a shortage of computer chips that hit the entire automotive industry last week.

From July to September, the company’s sales exceeded Wall Street’s estimated worldwide sales of 227,000, according to data provider FactSet.

Third-quarter sales were 72% higher than Tesla’s 140,000 deliveries a year ago during the same period.

So far this year, Tesla has sold about 627,300 vehicles. This will definitely exceed last year’s total of 499,550.

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Elon Musk says Tesla will move its headquarters to Texas Elon Musk says Tesla will move its headquarters to Texas

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