The new head office of the company is now located in the suburbs of Austin, on the territory of an automobile plant under construction
Tesla announced that its headquarters has officially been moved from California to Texas. The company’s main office is now located in the suburbs of Austin, in the same complex with a large car factory under construction there.
The official statement about the change of the headquarters address was made on Wednesday evening when submitting documents to the regulatory agency overseeing the securities market. CEO Elon Musk warned at the company’s annual meeting in October that the move would take place soon.
The documents say that Tesla’s headquarters was officially moved on Wednesday to the automotive “giga-plant” near Austin.
At the end of last year, the company employed about 71 thousand people worldwide. In 2020, the press service of Tesla reported that about 10 thousand people work at the headquarters in Palo Alto. Another 10 thousand people work at the car factory in California Fremont.
It is not yet known whether any employees will remain in the company’s California office. Daniel Ives, an analyst at Wedbush, said in October that some of the current Tesla employees might not want to leave northern California, but many would prefer to move because of the lower cost of living in Austin. According to his assumptions, Tesla will give people the opportunity to stay in California, and from 40% to 50% of employees of the California office may eventually move to Texas.
Texas looks more attractive due to much lower taxation, and hiring employees in this state will cost the company “much cheaper and easier,” Ives said.
Elon Musk first started talking about moving Tesla’s headquarters to Texas in early 2020, when he had a conflict with the authorities of the California district of Alameda over the reopening of the Fremont plant during the first COVID-19 outbreak.
Musk himself has already moved from California to Texas, whose authorities do not charge income tax from residents of the state.