Tesla CEO Elon Musk announced at a shareholder meeting Thursday that the Tesla headquarters will move from Palo Alto, California, to Austin, Texas.
Why it matters: Tesla isn't the first tech company to leave California. Oracle and Hewlett-Packard Enterprise moved their headquarters from Silicon Valley to Texas in December 2020.
The big picture: Musk said the company plans to increase production in its California facility despite the relocation, which will take time to reach full production.
- Musk cited housing affordability and commutes among reasons for the move.
- “To be clear we will be continuing to expand our activities in California,” Musk said Thursday. “Our intention is to increase output from Fremont and Giga Nevada by 50%. If you go to our Fremont factory it’s jammed.”
- Musk decamped to Texas from California in December 2020.
