Photo: YouTube Screenshot/Wired
Tesla Motors has officially moved its corporate headquarters from California to its currently-under-construction factory in Austin, Texas. The electric vehicle giant made public the move on Wednesday in a filing with U.S. securities regulators.
The move to Texas did not come as a surprise. Its CEO, Elon Musk, mentioned it at the company’s annual meeting in October.
According to the filling, the auto manufacturer’s move from Palo Alto, California to Texas Gigafactory on Harold Green Road, close to Austin, happened on Wednesday.
Tesla indicated in the U.S regulatory filings at the end of 2020 that it had close to 71,000 staff globally. According to company media releases, about 10,000 Tesla staff work at the Palo Alto headquarters, while another 10,000 at its Fremont, California Factory.
Based on the Wednesday filling, it was not clear if all its employees would move to the new headquarters in Texas.
Daniel Ives, an analyst at Wedbush, states that he expects more than 10,000 employees at the former Palo Alto headquarters won’t want to move from the Bay Area. However, a large number will relocate due to Austin’s low cost of living. He added that he thinks the tech company will give many of its staff the option of staying but expects 40% to 50% to move.
According to Ives, the tax incentives for the EV manufacturer will be massive down the road compared to California. He believes it’s also cheaper to get employees in Texas.
Musk hinted at making a move ever since a row with Alameda County, California health officials over reopening the factory in Fremont in 2020 at the start of the global health crisis.
According to The Associated Press, the tech CEO also said that he has moved his residence from California to Texas, where there is no state personal income tax.
According to the filling, the auto manufacturer’s move from Palo Alto, California to Texas Gigafactory on Harold Green Road, close to Austin, happened on Wednesday.
Tesla indicated in the U.S regulatory filings at the end of 2020 that it had close to 71,000 staff globally. According to company media releases, about 10,000 Tesla staff work at the Palo Alto headquarters, while another 10,000 at its Fremont, California Factory.
Based on the Wednesday filling, it was not clear if all its employees would move to the new headquarters in Texas.
Daniel Ives, an analyst at Wedbush, states that he expects more than 10,000 employees at the former Palo Alto headquarters won’t want to move from the Bay Area. However, a large number will relocate due to Austin’s low cost of living. He added that he thinks the tech company will give many of its staff the option of staying but expects 40% to 50% to move.
According to Ives, the tax incentives for the EV manufacturer will be massive down the road compared to California. He believes it’s also cheaper to get employees in Texas.
Musk hinted at making a move ever since a row with Alameda County, California health officials over reopening the factory in Fremont in 2020 at the start of the global health crisis.
According to The Associated Press, the tech CEO also said that he has moved his residence from California to Texas, where there is no state personal income tax.
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