Elon Musk confirmed that Tesla will move out of Silicon Valley

As part of a Tesla shareholder meeting, Elon Musk announced that the company will move its headquarters from Palo Alto, California, to Austin, Texas, two of the largest states in the United States.

The billionaire and entrepreneur has been hinting for months that a diversion may be imminent. He even started living in the state himself, the company even set up a factory in it Austin where, in addition, many of the operations of his aerospace company SpaceX were developed.

musk Justify the decision to move the headquarters Because of the high cost of living in the suburban town of San Francisco Because of the difficulties in expanding its facilities.

“We are excited to announce that we are moving our headquarters to Austin, Texas,” Musk confirmed on his social media. “It’s not about Tesla leaving California,” he added.

The businessman explained that the company is nearing its maximum capacity in California, although he emphasized that it will continue to grow in that state.

“We will continue to expand our activities in California (…) Our goal is to increase production of Fremont and Giga Nevada by 50%. If you go to our factory in Fremont, you are stuck.”And Musk said.

Regarding the new plant in Austin, I acknowledge that it will take some time to reach full level of production: “In Tesla-land, it takes longer to build the plant than to reach a large production volume once the plant is built.”

The company’s factory in the Chinese city of Shanghai, for example, was built in 11 months. However, it took nearly a year to achieve mass production.

Last May he had already introduced the possibility of changing headquarters: “Tesla will now move its headquarters and future programs to Texas/Nevada.” “Whether we continue the manufacturing activity in Fremont will depend on how we approach Tesla in the future,” he added at the time.

Tesla is building a new large factory in Austin For vehicle assembly and battery production.

businessman He has expressed dissatisfaction with California on numerous occasions, and has increased his criticism of the state, a stronghold of the Democratic Party, since the outbreak of the pandemic.

Musk came to describe the confinement orders issued at the start of the pandemic, in March and April 2020, as “fascist” and “forced imprisonment.”, by the authorities to contain the outbreak of Covid-19 in the country.

In May 2020, she ignored orders from authorities in Alameda County, where the Fremont assembly plant is located, To close facilities to follow up on measures against disease.

Musk had the support of the then President of the United States, Donald Trump, who wrote on Twitter that “California should allow Tesla and Elon Musk to open the plant now. This can be done quickly and safely.”

After what happened in the second quarter of 2020, Musk changed his residence from Los Angeles, where he lived about 20 years, to Austin. This change also allowed Musk, one of the richest men in the world, Significantly reduce what you pay in taxes.

Although Musk never had trouble expressing his thoughts on political issues, the businessman has now decided not to criticize Texas and its Republican governor. Greg Abbott, for its social policies, is among the most conservative in the country, including restrictions on abortion.

In September, when Musk was asked about his support for Abbott and its decisions, he wrote on Twitter: “Generally speaking I believe that government seldom enforces its will on residents, and in doing so, should aim to maximize their happiness. Having said that, I prefer to stay away from political issues.”

With information from EFE

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