Tesla has officially moved its headquarters from Silicon Valley to a large factory under construction outside of Austin, Texas.
The company announced on Wednesday in a filing with the US securities regulators. CEO Elon Musk had said at the company’s annual meeting in October that the change was imminent.
The filing states that the move from Palo Alto, California, to what Tesla calls a “Gigafactory” “Gigafactory” on Harold Green Road near Austin took place on Wednesday.
In US approval applications late last year, Tesla stated that it had around 71,000 employees worldwide. According to the company’s press releases in 2020, approximately 10,000 will work at its headquarters in Palo Alto and 10,000 at its Fremont, California facility.
It was not clear whether all employees at headquarters would have to move. A message was left on Wednesday by Tesla, which has disbanded its media division.
Wedbush analyst Daniel Ives said in October that he expects some of the 10,000 employees in Palo Alto not to want to leave the Bay Area, but a large number will because of Austin’s lower cost of living. He said he believes Tesla will give many the option to stay, but expects 40 to 50% to make the switch.
“We believe future tax incentives will be massive when you compare taxes to California,” said Ives. “It’s a lot cheaper and easier to get employees in Texas.”
CEO Elon Musk hinted at taking a step following a dispute with Alameda County, California health officials over the reopening of the Fremont factory last year at the start of the coronavirus pandemic.
Musk said he moved from California to Texas, where there is no state income tax.
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Tesla Officially Moves Headquarters From California to Texas
