Elon Musk, the CEO of Tesla Inc. (TSLA.O), and Gavin Newsom, the governor of California, announced on Wednesday. Tesla will establish California as the home of its worldwide engineering center.
In December 2021, Tesla relocated its corporate headquarters from Silicon Valley’s Palo Alto, California, to Austin, Texas, where it runs a new car factory. Additionally, Tesla’s founder, Elon Musk, moved from Los Angeles to the Lone Star State, which does not have a state income tax, from his previous residence in Los Angeles.
Texas and California compete politically and economically. For example, California has the most electric vehicles and gives Tesla tax incentives, whereas Texas has low regulations.
Several engineers live in California, a technological hotspot where the company’s initial facility stood. Musk claimed the Fremont facility would build over 600,000 EVs this year.
Palo Alto’s former HP building will house Tesla’s engineering headquarters. Musk called the shift “poetic” from Silicon Valley’s founding business to Tesla.
Morningstar analyst Seth Goldstein noted that Tesla’s engineering headquarters should be in the Bay Area to recruit top personnel.
Musk has blasted California for “overregulation, overlitigation, overtaxation” and argued with local politicians over the Fremont factory’s COVID-19 shutdown in 2020. Musk would vote Republican but congratulated the Democratic governor for buying a Tesla Roadster early on.
Newsom boasted on Wednesday that California was the nation’s largest industrial powerhouse. “Germany, eat your heart,” he laughed.
In light of federal incentives under the Inflation Reduction Act, the business stated Wednesday it would prioritize battery cell manufacture in the US.
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