Tesla is moving its headquarters to Texas from California

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Turns out Tesla is not simply constructing a manufacturing facility in Austin, Texas — it is also moving its headquarters to town from California. Elon Musk has announced the transfer on the company’s most up-to-date annual shareholder meeting, the place he additionally clarified that Tesla nonetheless plans to develop manufacturing at its California plant by 50 p.c. He defined, nonetheless, that there is “a limit to how big you can scale in the Bay Area,” as a result of home costs are sky excessive, which implies lengthy commutes for staff who’ve to dwell elsewhere. 

The transfer would not come completely as a shock: Musk beforehand threatened to transfer Tesla’s headquarters out of California after coronavirus lockdowns pressured the company to droop manufacturing within the state. He even referred to as the lockdown orders “fascist” throughout an earnings name in 2020 after which personally relocated from LA to Austin a number of months later. That mentioned, it is value noting that Tesla is now based mostly in a state the place it may possibly’t promote its vehicles to consumers immediately, which has been its strategy from the start, due to pro-dealership legal guidelines.

As CNBC notes, Musk moving to Texas means he’d be paying much less taxes. The state has no personal earnings tax, whereas California has a few of the largest earnings tax charges within the nation. Further, the state has been providing firms tax breaks to build amenities within the state beneath the Texas Economic Development Act.

During the meeting, shareholders additionally voted on proposals to enhance company governance. The New York Times mentioned they agreed on a lot of the proposals apart from a pair that the company opposed, certainly one of which might require the company to publish reviews on its efforts to diversify its workplace. Tesla mentioned in a report (PDF) final year that its management within the US is nonetheless principally white and male, whereas its workforce is 79 p.c male and 34 p.c white total. Just a number of days in the past, the company was ordered to pay $137 million in damages to a former Black employee. The plaintiff accused the automaker of turning a blind eye to discrimination and racial abuse whereas he was working at its plant in Fremont, California. 

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