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.

 

[vickh]

Changing by what metric ? Can you point to some ? Surely, VC numbers should be declining in CA then and growing in Texas. In fact, it is the opposite. The gulf between CA VC investment and Texas is actually growing. Austin has been reduced to a bit player despite the hype. There is only 1 or 2 unicorn in Texas compared to over 50 just in Bay Area. Companies that I referenced are only 5-10 years old. The only other two areas with significant VC dollars are also in deep blue states - NY and Washington.

this is the deep blue states paradox, but it's mainly in non manufacturing tech and finance type co.s. Tesla needs lax manufacturing regs, maybe leave their think tanks/ engineering in the Bay area though.

Austin is the exception (blue dot in red state, but that does give it a leg up as far as no income tax, but tough local laws. Even the lock down is in place til 5/31 unlike the rest of TX

 

[Tam]

...Where was the lockdown during the H1N1 pandemic?...

"Epidemiologists estimate it had an R naught of 1.5, making it less infectious than COVID-19.

The mortality rate is estimated at around 0.02% and ”[H1N1] ended up being a lot milder overall than we once feared, but it hit certain subgroups pretty hard,” former FDA Commissioner Scott Gottlieb said."

But schools did close down during H1N1:

 

[linux-works]

The only major influx of people to California are homeless and illegals.

"florida man" speaks.

lol

 

[linux-works]

Dont flatter yourself.

see, its passive-aggressive jealousy of some kind, when you have nothing of value to argue with, you end up with that kind of 'reply'.

the guy was right, in fact. some employers may try to relocate but the engineers who live here are here for something other than company A or B or C. its ALL of A and B and C; the fact that there are so many choices and, as a result, experience is greater (people do change jobs and that's a good thing, in fact, as the info moves around that way). security in the field is higher; if some company throws a temper tantrum (like papa elon is doing, now) - you will still have employment options in your field.

if you move to company town bumfuck and the ceo throws a hissy fit, well, you have to put up with it, or MOVE. and moving is highly disruptive. one of the most stressful times in a person's life is to move/relocate. no one does that just for grins and giggles anymore, except college hires, freshers and h1b's. none of that is going to make you truly competitive in tech; they will give you entry level staffing but that's just not enough to do the kinds of high-end design work that tesla needs.

 

[ChrML]

Moving HQ just ain't going to happen. Some employees are likely to move, but not the 10-20% that adds innovation and value to the company. The good ones will probably pursue other options in CA.

 

[Dave EV]

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.

Let's assume your survival rate is correct (which others pointed out, is almost certainly wrong) and 0.4% of the people in the USA that contract COVID-19 die. Given how viral it is, it is well assumed that around 60% of the population will eventually get it by the time we develop a virus, without social distancing measures. About 330 million people live in the USA. 0.4% would be 1.32 million people dead.

Elon is being a baby.

That's really the issue here. Tesla could be taking the exact same actions, but actually communicating the logic, rationally behind them and many, many more people would be - oh hey, that makes sense. Instead, we get impulsive rants on Twitter and lawsuits.

Whether Tesla/Elon admits it or not, this is not good PR and they are alienating a lot of existing and future customers.

 

[MXLRplus]

Moving HQ just ain't going to happen. Some employees are likely to move, but not the 10-20% that adds innovation and value to the company. The good ones will probably pursue other options in CA.

In the last 30 years, thousands of engineers have left California and now work in other states. There was a time when we had a massive influx and the world's largest aerospace industry in California. We had 4 large automakers here, all larger than Tesla. We were the hub of international space technology. And the birthplace of the integrated circuit. But this was back when the US worker was the most productive in the world too.

Let's put a number on it for the USA in the 21st century. From the National Assoc of Manufacturers:

People in the San Francisco Bay Area live in a fantasy world. They were often taught in business schools of today that the best way to achieve to true wealth is to move piles of money from one room to another, and not actually create anything. It's not sustainable and it's short sighted.

You should see Los Angeles in 2020 compared to what it was in 1980. Night and day difference. It was the largest manufacturing and engineering hub in the world. This is the future for SF unless we change our basic way of creating true wealth.

All the hype about California being the 5th largest economy in the world deliberately fails to mention that it used to be 1st.

 

[Bucfan11]

Wow, literally the stupidest comment I have read on this site.

No other state is even close. Why is that do you think?

 

[MXLRplus]

No other state is even close. Why is that do you think?
View attachment 540304

Huh. I wondered why they called CA and NY "Blue" states, now I know why.

 

[KJD]

In Texas:
Lower Corporate Taxes
Easy to start a business
More new business startups than most any other state
No State Income Tax
Properly Funded Public Schools
Lower Cost of living
Higher standard of Living
People can still be prosecuted for committing the same crimes over and over
Right to Work - unions have no power to stranglehold
There are engineers here too...
SPACEX
FSD Chip manufactured in Texas
STATE BUDGET OPERATES IN THE BLACK
If you are from California you will likely meet some of your old neighbors


In California:
Beautiful Big trees
Nice beaches if you can use them
Good Wine

Somebody doesn't think engineers will follow to Texas? They already have by the tens of thousands.

How many Tesla stores are there in Texas ?

Can you just go into a Tesla store and buy a car today ?

 

[Bucfan11]

How many Tesla stores are there in Texas ?

Can you just go into a Tesla store and buy a car today ?

No but it looks like you will be able in a year or so!

 

[linux-works]

I wonder if this is going to prompt any of the tesla employees to 'pull a tony li' and nail their resignation letter to elon's office door.

would be a lol event for the decade. a nice silicon valley touch, too (elon won't understand; it will be right over his over-inflated head).

 

[ChrML]

In the last 30 years, thousands of engineers have left California and now work in other states. There was a time when we had a massive influx and the world's largest aerospace industry in California. We had 4 large automakers here, all larger than Tesla. We were the hub of international space technology. And the birthplace of the integrated circuit. But this was back when the US worker was the most productive in the world too.

Let's put a number on it for the USA in the 21st century. From the National Assoc of Manufacturers:
View attachment 540302

People in the San Francisco Bay Area live in a fantasy world. They were often taught in business schools of today that the best way to achieve to true wealth is to move piles of money from one room to another, and not actually create anything. It's not sustainable and it's short sighted.

You should see Los Angeles in 2020 compared to what it was in 1980. Night and day difference. It was the largest manufacturing and engineering hub in the world. This is the future for SF unless we change our basic way of creating true wealth.

All the hype about California being the 5th largest economy in the world deliberately fails to mention that it used to be 1st.

Good points, and probably pretty accurate. However I was thinking about the existing employees, which know the company well and over time has been learning to operate it.

Moving is likely to cause a 90-95% turnover of HQ employees, which is really challenging to hire, even moving to locations with the most engineers. The 5-10% of the employees moving with the company are likely not the ones generating the most innovation and value.

People have been complaining about Tesla's left hand not knowing what Tesla's right hand is doing. That matter is going to get much worse after a 90-95% employee replacement, especially at the HQ.

 

[Bucfan11]

I wonder if this is going to prompt any of the tesla employees to 'pull a tony li' and nail their resignation letter to elon's office door.

would be a lol event for the decade. a nice silicon valley touch, too (elon won't understand; it will be right over his over-inflated head).

At this point, the most important employees are the production floor employees. I have never seen a low level production employee turn in a resignation. I have worked in a production facility for over 30 years, during this time I have seen them quit, I have seen them give a two weeks notice and I even seen one get hauled off the floor on his way to prison but never has one turned in a resignation letter. If someone in management resigns it is just one less employee to deal with when they move production.

 

[SouthFLGuy]

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

I think there's a lot of misinformation about this. Sure, elderly and immunocompromised people are at greater risk. But people in their 30s-50s are making up a large portion of those in the ICUs and those dying. Until we figure out why that is happening, or have a vaccine that provides strong protection, there are still many unknowns.

 

[ChrML]

At this point, the most important employees are the production floor employees. I have never seen a low level production employee turn in a resignation. I have worked in a production facility for over 30 years, during this time I have seen them quit, I have seen them give a two weeks notice and I even seen one get hauled off the floor on his way to prison but never has one turned in a resignation letter. If someone in management resigns it is just one less employee to deal with when they move production.

Production floor employees generate all the value, but they can't function without a good and stable management that knows how to get the best out of them. A management team should communicate a clear direction of where the company is headed, and be consistent about the goals.

Most people in the world, around 70-80%, have a mind that prefer stability and predictability. Replacing a well-functioning management is likely to lead to a lot of insecurity amongst the employees, and insecure workers perform less than secure/confident workers.

However if the HQ management already is bad it can only get better, and moving the HQ could be a good way of "resetting" the company.

Also note the software developers is an important piece. Replacing 90% of the software team is really non-trivial.

 

[house9]

No other state is even close. Why is that do you think?

I never said California didn’t have a homeless problem. You said the only people coming to California were ‘homeless’ and ‘illegals’; which is clearly a false statement.

I’m not even going to address the ‘illegals’ comment, we could get spun out arguing about that for days.

There are people coming to California from all over the world for every different reason you can think of - usually job opportunities, there are also people leaving California as well and I would assume because the cost of living is very high.

People that become homeless in California are usually from California not somewhere else:

—-
- California's homelessness crisis — and possible solutions — explained | CalMatters

Are they local, or are they coming from somewhere else?

One of the more enduring myths about California’s homeless population is that the vast majority have traveled here from other states, seeking generous government assistance and weather more hospitable to living outdoors. It’s a baseless claim perpetuated by both sides of the aisle.

While comprehensive statewide data is lacking, local surveys indicate people living on the streets are typically from the surrounding neighborhood.

—-

 

[TESLER2013]

I call BS. Elon is just bluffing. However, if they do move out of the factory they invested a ton load of money on would not be smart. The ex Chevrolet / Toyota plant is massive. I just charged there yesterday. Lucid Motors is in the next city over in case you guys don't know the bay area (literally next to Fremont). Newark based Lucid could move into the factory and have everything ready to go for them haha thanks Elon

 

[TESLER2013]

OH and Cupertino is 15 miles away from the plant

 

[linux-works]

At this point, the most important employees are the production floor employees.

absurd position to take; and it reveals more about your POV than anything else.

lets do a thought experiment. lets reset tesla, entirely. everyone goes and they totally rehire everyone.

could the company effectively recover from that?

now, lets take division by division. fire all the execs and replace them. do we notice? fire all the line workers and replace them. then do that to the design engineers.

which can recover?

give reasons (not emotion) and defend your arguments.

GO!