Blog Tesla Will Move HQ Out of California After Fight Against Health Order

Tesla Chief Executive Elon Musk said on Twitter Saturday that the company will move its headquarters and “future operations” out of California. Additionally, Tesla plans to file a lawsuit against Alameda County over a health order that shut down the Fremont, Calif. facility.

Tesla planned to return to production on Friday, however Alameda County’s interim public health officer, Dr. Erica Pan said that Tesla must keep the plant closed until the county lifts restrictions in place to slow the spread of COVID-19.

Musk said the suit will be filed “immediately.” He called Pan “ignorant” for keeping the restrictions in place despite California Gov. Gavin Newsom loosening the stay-at-home order.

“This is the final straw,” Musk tweeted. “Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen on how Tesla is treated in the future. Tesla is the last carmaker left in CA.”

https://twitter.com/x/status/1259162367285317633

The tweet suggests that Tesla’s next factory is set to be built in Texas. Musk has teased the Lone Star State as the home for the next factory and an announcement was expected soon.

Tesla’s factory in Fremont has 5.3 million square feet of manufacturing and office space on 370 acres of land, with plans to expand to 10 million square feet, according to the company’s website.

There are 10,000 employees at the Fremont factory who build the Tesla Model S, Model X, and Model 3.

 

[M3BlueGeorgia]

I'd be upset too. The numbers say there is absolutely no reason Tesla can not produce cars. A virus with a 99.6% survival rate and we shut down and kill the entire economy. Far more people will die from the economy crashing than from this virus in the US. If he does sue and it makes it out of the 9th circuit he will win as all of these lock downs are un-constitutional. California is run by people who are not friendly to businesses but that's on Musk as the state has been that way for over two decades. He should move it to Texas.

Mortality rate is 2.4% or worse. NY State's rate of death from COVID-19 on a confirmed diagnosis is around 9%, though is generally believed that 2 to 3 times as many people have the disease as know about it.

 

[Bucfan11]

Check out what actual Tesla employees think of Elon Musk. From Glassdoor:

"
Advice to Management

I was debating whether I approve of the CEO or not. On the one hand, he occasionally sends these excellent emails about business philosophy and avoiding siloing, wasteful meetings, and that managers are there to support their employees, not the other way around. 10/10 on that! When he leads an all-hands meeting, he usually has interesting things to say, especially if you can get him free-form thinking out loud during a Q&A session. On the other hand, he is a relentless micro-manager and singlehandedly derails production, reduces product quality, makes hundreds of people have to work much harder, and causes massive waste because he wants to see every little detail and change those details at literally the last minute. It’s grossly inefficient and is ruining the company bit by bit. My advice to management: The company would work much better if Elon was only an idea man, locked up safely in a room somewhere, with his hands completely off of operations."

what
What does that prove? He has thousands of employees some good, some bad.

 

[DanCar]

... would have been smarter to allow Tesla to open at reduced capacity, say only 20% employees allowed. With several inspections by county officials to make sure that social distancing was being maintained.

I've seen how these people make decisions. It is all about safety with disregard for other factors. Many consider the employment factor evil, i.e. the money factor.

 

[Uncle Paul]

Only Elon knows how he was treated. He will make his decisions upon what he feels is the best direction for the company going forward.

Elon is in a challenging position. If he is hands on and involved in the day to day issues, some will say he is a micro-manager and obsessive compulsive. If he stays as a disconnected owner, then people will call him aloof and out of touch with the real issues going on inside his company. He really can't win.

Bottom line, is his cars are cleaner than the legacy production. They don't fowl the air and spew poison out a tailpipe. There is strong demand for what he has created, so I guess he can call his own shots.

Believe he has already decided to sell all his California properites. Maybe become a Citizen of the World, having landing spots where ever he has facilities, and declare a residence in a tax favored nation. Maybe even declare his legal residence on THE WORLD cruise liner that has dominion only on the water. Later he may be one of the first to declare as a resident of MARS!

If Elon leaves California, he will just be one of a long string of managers deciding California has seen it's best days, and move on.

 

[MXLRplus]

California is not the EV friendly state it used to be.

They had two choices:
Grant an exemption for EV mfrs.
Don't cut EV makers any slack.

This is nothing new to California. We only pay lip service to green tech.

 

[Brovane]

I've seen how these people make decisions. It is all about safety with disregard for other factors. Many consider the employment factor evil, i.e. the money factor.

That is what I am worried about. It seems like there is many people on this board who don't understand how Bay Area bureaucrats make decisions. They think making money is bad but at the same time ignore the fact that people need to work.

 

[Bucfan11]

That is what I am worried about. It seems like there is many people on this board who don't understand how Bay Area bureaucrats make decisions. They think making money is bad but at the same time ignore the fact that people need to work.

I think many feel there is no need to work. The government will take care of you...

 

[Tam]

Elon don't like old people?

It doesn't help when Tesla doesn't have things that help the elderly such as ceiling grab handles.

There used to be a display day of the week, month, date, and time but now only the time display survives...

 

[N5329K]

Check out what actual Tesla employees think of Elon Musk. From Glassdoor:

"
Advice to Management

I was debating whether I approve of the CEO or not. On the one hand, he occasionally sends these excellent emails about business philosophy and avoiding siloing, wasteful meetings, and that managers are there to support their employees, not the other way around. 10/10 on that! When he leads an all-hands meeting, he usually has interesting things to say, especially if you can get him free-form thinking out loud during a Q&A session. On the other hand, he is a relentless micro-manager and singlehandedly derails production, reduces product quality, makes hundreds of people have to work much harder, and causes massive waste because he wants to see every little detail and change those details at literally the last minute. It’s grossly inefficient and is ruining the company bit by bit. My advice to management: The company would work much better if Elon was only an idea man, locked up safely in a room somewhere, with his hands completely off of operations."

This is how EM rolls and always has. Back in the early days, he substantially delayed Roadster production over sill heights. The reason? His then-girlfriend couldn’t get in and out of the car in short skirts.
You cannot accuse the man of changing.
Robin

 

[daviddavid]

I think he will ultimately stay. This will put pressure on the county like they haven't felt before. The cost to move would be huge. On the other hand, the door is now open. To me government is playing checkers when Musk is playing chess.

You can't help but think that Musk is worried about a 2nd and 3rd round of a Covid like situation. He doesn't want to repeat history.

 

[aaron0k]

I think Elon had already planned to 'move' and is just using this to bring attention to himself and crap on Alameda for not letting him get his way.

Tesla is wherever Elon is... that's not hard to 'move' and his core team will follow. California got its S3XY which fit it and the 'blue' demographic elsewhere. Texas/Neveda is 'Truck' country and making them there will help with the acceptance of EV's in the 'red' areas. Rivian already pushed Tesla out of Colorado cool crowd.

Elon has obtained all he can get from CA. Which State 'Tesla' lands next depends on which one provides the most money and praise. Credit to his genius. Maybe Elon should buy a football stadium?

 

[pevchamp]

MOVE TO WV ,,,,

 

[ItsNotAboutTheMoney]

Elon don't like old people?

According to Elon Musk, a pandemic is only serious if lots of young, healthy people are dying.

 

[MXLRplus]

Maybe Elon wasn't a helicopter child and lacks the hypochondriac training required for 2020 society?

 

[SouthFLGuy]

I'd be upset too. The numbers say there is absolutely no reason Tesla can not produce cars. A virus with a 99.6% survival rate and we shut down and kill the entire economy. Far more people will die from the economy crashing than from this virus in the US. If he does sue and it makes it out of the 9th circuit he will win as all of these lock downs are un-constitutional. California is run by people who are not friendly to businesses but that's on Musk as the state has been that way for over two decades. He should move it to Texas.

That’s not the survival rate. Death rate is somewhere between 3-5%. And Elon has benefited from California as well. There’s a lot we do not know yet about this virus. He needs to settle down.

 

[AMPd]

Good! I’d love to see Tesla move out of California, this state is run by morons. From the local government all the way to the capital.

 

[MXLRplus]

Good! I’d love to see Tesla move out of California, this state is run by morons. From the local government all the way to the capital.

Our current CA government was based on the film Idiocracy.

 

[Bucfan11]

Maybe Elon wasn't a helicopter child and lacks the hypochondriac training required for 2020 society?

DING, DING, DING! We ahve a winner.

 

[Bucfan11]

That’s not the survival rate. Death rate is somewhere between 3-5%. And Elon has benefited from California as well. There’s a lot we do not know yet about this virus. He needs to settle down.

Was it not 20 or 30% of LA that tested for anti-bodies. No way 3-5% mortality rate unless you're over 80.

 

[electricar]

Toyota reached the same conclusion. Manufacturing things in California just doesn't make economic sense for a variety of reasons and after shutting down Fremont in 2010 they also moved their corporate HG to Texas in 2014. Tesla may also follow their lead and keep a design studio in the Golden State but that's about it.