After less than two years in Texas, Tesla is moving its engineering headquarters back up to northern California, CEO Elon Musk announced Wednesday.
During a press conference alongside Democratic California Governor Gavin Newsom, 55, the pair announced that the electric vehicle manufacturer would return to Palo Alto.
Musk, 51, moved Tesla down to Austin, Texas in the fall of 2021 over tax breaks, the cheaper cost of labor, and a battle between himself and local health officials.
At the time, Musk was adamant about his desire to reopen a massive manufacturing plant in Freemont, which was argued against by the Alameda County Department of Public Health.
During his press conference Wednesday the tech CEO described the move as a ‘poetic transition,’ while also stating Tesla’s corporate HQ will remain in Texas.
During a press conference alongside Democratic California Governor Gavin Newsom, the pair announced that the electric vehicle manufacturer would return to Palo Alto
Musk moved Tesla down to Austin, Texas in the fall of 2021 over tax breaks, the cheaper cost of labor, and a battle between himself and local health officials
At the time, Musk was adamant about his desire to reopen a massive manufacturing plant in Freemont, which was argued against by the Alameda County Department of Public Health
Musk Wednesday said he was giddy to announce the move while standing next to the California governor.
‘We’re excited to announce that Tesla’s global engineering headquarters will be right here in the former headquarters of Hewlett-Packard,’ Musk said.
Not all of Tesla’s operations will be centered in the Golden State, however, as the company’s corporate headquarters will remain in Texas.
When Musk moved Tesla down to Texas, he also moved his own residence.
Texas is known for having no state personal income tax which could have been one of the biggest attractions for the CEO who is worth an estimated $182 billion.
The move will put Musk closer to Twitter’s headquarters, as well, located in San Francisco. Musk purchased 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 come back 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 coming attraction,’ Newsom continued.
Tesla will return to Palo Alto, California with their engineering HQ. The company’s corporate HQ will remain in Austin, Texas
Musk Wednesday said he was giddy to announce the move while standing next to the California governor
‘We’re excited to announce that Tesla’s global engineering headquarters will be right here in the former headquarters of Hewlett-Packard,’ Musk said.
A sign marks the entrance of Tesla Motors Inc. headquarters in Palo Alto, California
Charging stations are seen at the Tesla Corporate Headquarters on January 03, 2023
‘Tesla is a California company,’ Governor Newsom said. ‘It started here first’
Musk moved Tesla down from Palo Alto, California to Austin, Texas in 2021
Tesla was given 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 to the west, however, tax incentives could be the reason.
Newsom and the state of California are electric-focused and have supported Tesla over the years.
The governor said bringing Tesla back was critical for the state to become the leader in automotive manufacturing.
‘We are able to lay claim to 44 manufacturing headquarter companies in the electric vehicle space, but none that dominate like Tesla,’ Newsom said.
Overall, California is the largest car manufacturer in the United States.
The factory in Fremont, California is expected to solidify California’s standing as Musk predicts some 600,000 vehicles will be manufactured at the site over the next year.
The governor said bringing Tesla back was critical for the state to become the leader in automotive manufacturing
Newsom and Musk appeared chummy at times throughout the meeting, even joking about their decades long ‘relationship’
Newsom and Musk appeared chummy at times throughout the meeting, even joking about their decades-long ‘relationship.’
Musk joked that Newsom, whose state has put significant emphasis on going electric, likely put down a $100,000 deposit for his first Tesla in 2007.
Newsome joked back that he only purchased his Tesla when he ‘had money’ to do so and said he and Musk had similar networths at the time.
‘Your [networth] went negative, and I got a pension, so eat your heart out,’ Newsom laughed.
