Tesla CEO Elon Musk has said that his company plans to move its headquarters from Palo Alto in Silicon Valley, California to Austin, Texas, where it is building a massive car and battery manufacturing complex.
Tesla joins companies such as Oracle, HP and Toyota Motor in relocating their US headquarters from California, which has relatively high taxes and a cost of living, and although Silicon Valley is home to developing new ideas and companies, Texas is known for its cheaper labor and less stringent regulatory restrictions.
Tesla’s factory in Vermont, California, is “crowded,” and it’s hard for people to afford homes in California. Billionaire Musk himself moved from California to Texas in December to focus on his new company’s plant in the state and his other company, SpaceX, which owns a launch pad in the southern tip of Texas, as well as Musk’s intent to evade taxes. Read more [The 3 Richest People In America Are Exempt From Income Taxes].
Musk has had a sometimes turbulent relationship with California, which makes him threaten to move Tesla’s headquarters and future projects to Texas after a row over the shutdown of Tesla’s factory in Vermont over the COVID-19 pandemic.
Despite criticism from activist shareholders and advisory services agencies, Tesla shareholders have followed board guidance on several key proposals, including the re-election of Kimball Musk, Elon’s brother, and James Murdoch as board directors.