Blog Tesla Moving Headquarters to Austin, Texas

Tesla is moving its headquarters to Austin, Texas.

Chief Executive Elon Musk announced the move during the company’s annual shareholder meeting. The CEO has relocated to the state and Tesla is currently building a factory near Austin. Tesla’s current HQ is in Palo Alto, Calif.

Last year, Musk disagreed with officials in California over certain coronavirus restrictions that temporarily shut down Tesla’s factory. He signaled at that time that the company may move to Texas. Tesla also released two press releases recently with a dateline of Austin rather than Palo Alto.

Construction at Giga Texas began in July 2020. Production of the Model Y at the factory is expected to begin by the end of the year and ramp up in 2022. The factory will also produce the Cybertruck, which Musk said will not be available until the end of next year. Volume production for Cybertruck will not kick in until 2023.

Musk said Tesla will explore a new factory next year and possibly make a decision in 2023.

 

[Darmie]

Why all this back and forth about California and Texas. Actually Tesla is incorporated in the state of Delaware. This brings it's own tax advantages.

https://sec.report/CIK/0001318605

 

[tivoboy]

Why all this back and forth about California and Texas. Actually Tesla is incorporated in the state of Delaware. This brings it's own tax advantages.

https://sec.report/CIK/0001318605

Incorporation, domiclle and where your operations and employees are are all very different. 75% of companies are indeed “incorporated” in Delaware. It’s been that way for many decades if not over half a century. If you don’t operate in Deleare, you don’t pay MUCH in the way of corporate taxes.

But, the real reason companies do it is the laws and policies afforded to Delaware companies in the courts in Delaware.

It’s something, but has very little to do with corporate taxes. Delaware might as well be considered a Tax Haven, well okay, it is.

 

[Bigship]

I think Elon spends so much time in Texas with SpaceX and his Austin expansion that it also make sense for him personally. Got to remember that he is human after all

 

[FlatSix911]

Seems hard to find this answer. The Austin-American Statesman looked into it and only came up with the following:

So 650 max. Maybe 500-600 considering growth since 2009?

The current HQ headcount is over 1,000 and growing... a huge loss for California.

 

[tivoboy]

Got to remember that he is human after all

Wait! WHAT? This is the first I‘ve head of this. I thought he was running the simulation!??

 

[WhiteWi]

Wait! WHAT? This is the first I‘ve head of this. I thought he was running the simulation!??

He said that it’s highly possible we live in simulation.

 

[Darmie]

He said that it’s highly possible we live in simulation.

Um, yea, he says a lot of interesting things. I think he's hitting Psychedelics way to much. Na, just kidding. I like the way he views the world. He's very receptive to ideas and feels people should make their on choices.

Elon Musk Says People Should Be Open to Psychedelics

Will this impact the markets?

www.greenentrepreneur.com

 

[ohmman]

The current HQ headcount is over 1,000 and growing... a huge loss for California.

Interesting. Where did you get that stat? I couldn't find it when I searched.

As of 2020, Silicon Valley employed about 1.46MM workers. Approximately 989,399 were high wage or mid-wage workers, which I think is probably a comparable distribution to Tesla HQ. If there are 1000 Tesla workers, it represents approximately one one hundredth of one percent of those workers in Silicon Valley alone, assuming they all move. "Huge loss" may be overstating it, especially in the context of the whole of California.

Barely noticeable is probably more accurate.

 

[tivoboy]

Interesting. Where did you get that stat? I couldn't find it when I searched.

As of 2020, Silicon Valley employed about 1.46MM workers. Approximately 989,399 were high wage or mid-wage workers, which I think is probably a comparable distribution to Tesla HQ. If there are 1000 Tesla workers, it represents approximately one one hundredth of one percent of those workers in Silicon Valley alone, assuming they all move. "Huge loss" may be overstating it, especially in the context of the whole of California.

Barely noticeable is probably more accurate.

Yeah, I’m going with mostly barely noticeable for the foreseeable future. I doubt Tesla is going to make some requirement and I think of the CURRENT HQ employee based, less than 30% are going to move full time to Texas.

I almost went with 15% but figured I’d hedge.

 

[FlatSix911]

Yeah, I’m going with mostly barely noticeable for the foreseeable future. I doubt Tesla is going to make some requirement and I think of the CURRENT HQ employee based, less than 30% are going to move full time to Texas.

I almost went with 15% but figured I’d hedge.

https://www.bizjournals.com/austin/news/2021/10/07/elon-musk-austin-tesla-headquarters.html

https://www.bizjournals.com/sanjose/news/2021/10/13/tesla-hq-move-is-game-changing.html

"Tesla Inc. CEO Elon Musk on Oct. 7 cemented the theories that Central Texas would be key in the electric vehicle manufacturer's future. And while Tesla's move to Austin wasn't shocking, it will catapult the region's relocation wins to new heights, according to economic experts who spoke with Austin Business Journal's Kathryn Hardison. However, there is a considerable amount of work to do, too, specifically around affordability, traffic, and supplying a strong homegrown workforce.

• Why it's such a big deal: Most, if not all, of the C-suite executives of the world’s most valuable carmaker will be making decisions in the Austin area.
• Size matters: Tesla will be the second-largest publicly traded business based in Austin, trailing only Oracle Corp.
• And: The move could lead to other relocations as the California exodus continues."

 

[ohmman]

https://www.bizjournals.com/austin/news/2021/10/07/elon-musk-austin-tesla-headquarters.html

https://www.bizjournals.com/sanjose/news/2021/10/13/tesla-hq-move-is-game-changing.html

"Tesla Inc. CEO Elon Musk on Oct. 7 cemented the theories that Central Texas would be key in the electric vehicle manufacturer's future. And while Tesla's move to Austin wasn't shocking, it will catapult the region's relocation wins to new heights, according to economic experts who spoke with Austin Business Journal's Kathryn Hardison. However, there is a considerable amount of work to do, too, specifically around affordability, traffic, and supplying a strong homegrown workforce.

• Why it's such a big deal: Most, if not all, of the C-suite executives of the world’s most valuable carmaker will be making decisions in the Austin area.
• Size matters: Tesla will be the second-largest publicly traded business based in Austin, trailing only Oracle Corp.
• And: The move could lead to other relocations as the California exodus continues."

So there is some speculation in that quoted text. I am curious about your 1000 number still - can you point me to the source?

 

[tivoboy]

So there is some speculation in that quoted text. I am curious about your 1000 number still - can you point me to the source?

I couldn't get through both paywalls easily, but saw that. I'm going to say, I'll eat a SHOE if 1000 HQ employees more to Austin. The fact that many high level C level execs will be "working from" Austin, doesn't mean they've moved.

That said, I have a LOT of ex colleagues, business contacts and friends who HAVE moved to Texas in the past couple years.. more than HALF have moved back as of now. It's pretty funny. some say weather some say politics. Some say they miss having MOUNTAINS or even hills higher than a 2 hour hike. (don't @ me, I know there are SOME peaks in Texas and I LOVE BIG BEND) But for many reasons, it's at least not for everyone.

Notable frequent disclaimer: I was BORN in TEXAS, Austin, and while I've lost my accent over the years living around the globe, it finds its way back after 1-2 cold Lone Star.

 

[ohmman]

I couldn't get through both paywalls easily, but saw that. I'm going to say, I'll eat a SHOE if 1000 HQ employees more to Austin. The fact that many high level C level execs will be "working from" Austin, doesn't mean they've moved.

That said, I have a LOT of ex colleagues, business contacts and friends who HAVE moved to Texas in the past couple years.. more than HALF have moved back as of now. It's pretty funny. some say weather some say politics. Some say they miss having MOUNTAINS or even hills higher than a 2 hour hike. (don't @ me, I know there are SOME peaks in Texas and I LOVE BIG BEND) But for many reasons, it's at least not for everyone.

Notable frequent disclaimer: I was BORN in TEXAS, Austin, and while I've lost my accent over the years living around the globe, it finds its way back after 1-2 cold Lone Star.

Thanks. Yeah, I have a pretty strict privacy policy on my laptop and those links were not thrilled with it so I couldn't get through. Apologies to @FlatSix911 for asking a question a second time and not realizing those links were the response.

My friends from Austin are always surprised at the variety in a short drive around here. Coast, redwoods, wine country, city, and a bit farther, the Sierras. One said "I could drive two hours in any direction from Austin and basically still be in an Austin without the buildings." That said I still have a lot of love for Austin. I had a great 20 years there.

 

[daniel]

... I have a LOT of ex colleagues, business contacts and friends who HAVE moved to Texas in the past couple years.. more than HALF have moved back as of now. It's pretty funny. some say weather some say politics. ...

I spent a semester in Monterrey, Mexico, which everybody said was about the same climate as south Texas. It was a wonderful experience, but the weather was absolutely horrendous. It went back and forth from low 40's Fahrenheit (5-6 C) to low 40's Celsius (105-110 F) every third or fourth day. No way in the world would I want to live in Texas.

 

[PismoPat]

Clearly this move is about sending a message, and I for one received it. I love my M3 but my next EV will not be a Tesla.

Is that your nose on the floor?

 

[Merrill]

Personally the more people that move out of California the better it is way to crowded.

 

[yayabiko]

Yes, it is still illegal. They have circumvented the law by opening stores on Native American land where the law cannot be enforced. Texans can then purchase from the Native land (in New Mexico).

Tesla opens store on Native land

The electric car company can only sell and service its vehicles freely in about a dozen states, while it faces restrictions in others. This time, it used a new approach

indiancountrytoday.com

I'm loving the irony here. EM leaves CA ostensibly due to heavy regulation and moves to a state where he cannot sell his cars to the public. Which state has the more pro-business laws?

Regardless, EM has benefited from CA's progressive EV friendly laws and rebates, CA's progressive residents that want to embrace the future, and frankly CA's high gas costs and CA's congested traffic (think HOV stickers) also help.

Driving around northern California it literally feels like 10% of all cars are Teslas. I haven't seen a saturation level like this anywhere else in my travels around the states. CA made Tesla possible and EM bailed out probably to save on taxes. It's a shame.

 

[ReddykwRun]

Interesting. I don't agree. But I kinda understand (maybe)?

But mostly I'm curious which EV you are considering for your next purchase. What do you think will be on par with M3? Or, which EV is closest to the M3 that you would be willing to sacrifice _fill_in_the_blank_ feature because the new car is not a Tesla?

I hear the GM Volt is leading the way in EV technology, I heard someone say recently. Probably one of those since it's made by a large OEM with so much experience in selling cars so they have it all figured out I am sure.

 

[gravastar]

I hear the GM Volt is leading the way in EV technology, I heard someone say recently. Probably one of those since it's made by a large OEM with so much experience in selling cars so they have it all figured out I am sure.

I think you mean the Bolt instead of the Volt (which was discontinued a few years ago). In either case, @ReddykwRun, I would encourage you to continue looking at the data.

 

[ReddykwRun]

I think you mean the Bolt instead of the Volt (which was discontinued a few years ago). In either case, @ReddykwRun, I would encourage you to continue looking at the data.

Well aware of the history behind the Volt and the BOLT, did not make a mistake. Government Motors leading the way, ya right, I heard some potato say. Implied humor.