Despite a tumultuous relationship with the state, Elon Musk has decided that Tesla will be setting up their new engineering headquarters in California. The EV maker has taken over an office space that was previously occupied by HP Computers.
Tesla revealed a new engineering headquarters in California, taking over office space previously held by Hewlett Packard in Palo Alto. Tesla CEO Elon Musk made the statement alongside California Governor Gavin Newsom, who dubbed it “another proof point of California’s green energy vibrancy.”
Tesla’s California connectionTesla was established in San Carlos, California in 2003 and has spent the majority of its 20-year life there. In October 2021, the business suddenly relocated its headquarters to Austin, Texas, in recognition of the state’s new Gigafactory. Tesla has Gigafactories in Nevada, Berlin, Buffalo, and Shanghai, among other places.
The plant in Fremont, California, just outside of San Francisco, is still in operation. And California is one of Tesla’s most important global marketplaces. But Tesla CEO Elon Musk’s relationship with the Golden State has grown increasingly shaky over the years.
Musk’s souring relation with California made him move to TexasMusk previously vowed to yank Tesla’s entire operation out of California in 2020, citing his strong opposition to the state’s shelter-in-place orders during the height of the covid pandemic. As a measure of protest, Tesla sued the county in which its California plant is located.
Musk relocated to Texas near the end of 2020, as SpaceX significantly expanded its footprint in the state’s southern point. He also stated that he believes California has become too “complacent” with its people and companies. During the early period of the Covid-19 pandemic, Musk blasted officials in California for shelter-in-place orders, calling the restrictions a violation of the people’s rights and equating them with fascism.
The Californian romance continues, but…However, Tesla has maintained a foothold in California. The business continues to spend in its Fremont factory and retains its Palo Alto headquarters. And, over the years, California has invested in Tesla through tax rebates and other taxpayer-funded benefits. Since 2009, California has spent more than $3.2 billion in Tesla, according to Newsom’s administration.
California and Texas are political and economic competitors. California, the most popular state in the United States, has the most electric cars of any jurisdiction. Texas, rated second, is known for its lax oversight and is the centre of the country’s oil and gas sector.Tesla’s initial car factory is in Fremont, California, and it has the ability to produce approximately 650,000 vehicles per year.
Musk said on CNBC on Wednesday that California should be careful about taxes and rules.