CEO Elon Musk announced on Thursday that he is planning to move Tesla headquarters from California to Austin. He broke the news during the annual stakeholders’ meeting of the company, which was held for the first time at the $1.1 billion manufacturing facility the company is building in Travis County. The facility covers a twenty-one-hundred-acre property at Harold Green Road and Texas 130.
Elon Musk announced that Tesla will move its headquarters to Austin, Texas, but said that the electric-vehicle maker will maintain a significant presence in longtime base California #WSJWhatsNow pic.twitter.com/fd8rX034FU
— The Wall Street Journal (@WSJ) October 8, 2021
The Tesla CEO tweeted that he is excited to announce the company is moving its headquarters to Austin, Texas. Further, he adds that they are going to make an ecological paradise across the Colorado River. Previously, Musk threatened to move the headquarters of Tesla from Palo Alto, California, to Nevada or Texas in 2020, following differences with California representatives. Moreover, Musk didn’t mention that disagreement during the shareholders meeting on Thursday.
A Strategic Move for Tesla
An analyst with Wedbush Securities, Den Ives, said the decision of the auto manufacturing company won for Austin, and it makes sense for Tesla. Ives adds that the tea leaves were there for the company to make this announcement, and it is an extensive feather in the cap for Austin.
Previously, in July 2020, Musk announced that Austin was the option for the Tesla facility, where the firm plans to manufacture its Cybertruck, Model Y, Model 3 company sedan, Semi, and batteries. On Thursday, Musk said that the Austin facility of Tesla might also manufacture Tesla ATVs.
A big announcement for Texans with 10,000 Jobs
On Thursday, Musk said that Tesla is making considerable development on the Austin-area facility, the corporation called Giga Texas. The company plans to roll out the first vehicles as soon as this year, and the factory could bring over ten thousand new jobs to Central Texas through 2022. Last year, local government entities approved millions of dollars in tax breaks to help lure the Tesla facility to Central Texas.
The board of the Del Valle school approved a tax break that may have been worth around $46.4 million over ten years, while commissioners of Travis County approved an inducements package having worth of around fourteen hundred million over ten years. On Thursday, Musk said that while the company is moving its HQ to Austin, Tesla will continue to expand in California. He also said that they intend to surge output from Giga Nevada and Fremont by fifty percent.
Over the course of the coronavirus pandemic, other Musk-led companies have been expanding into Austin. They include the tunneling company of Musk, the Boring Company, which purchased land in Bastrop County; the Musk Foundation, which relocated to Austin last year summer; and Musk’s neurotechnology company, Neuralink, which shifted in Austin in recent months.