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The inevitable has happened: Tesla is leaving the Bay Area, following CEO Elon Musk.
At a shareholder meeting Thursday, CNBC reported, Musk announced that its headquarters would move from Palo Alto to Austin, explicitly citing the cost of the Bay Area as a bottleneck for the company’s expansion.
“It’s hard for people to afford houses, and people have to come from far away,” he said at the meeting, which CNBC reports took place at a factory in Austin. “There is a limit to the size you can reach in the bay. Area.”
“To be clear, we will continue to expand our business in California,” Musk said.
Insider also reported that Tesla’s latest press releases were sent from Austin rather than Palo Alto.
But more implicit is Musk’s apparent aggravation towards the state of California and the Bay Area, which has been a regulatory albatross for Tesla.
In May, the California Department of Motor Vehicles announced an investigation into the automaker’s “autonomous driving” claims.
And last year, as Alameda County stepped up its COVID-19 policies and forced the Tesla factory in Fremont to close, Musk threatened to sue the county and vowed to move the company’s headquarters out of the city. state in Texas or Nevada. (The trial was dropped 11 days later.)
He also cursed state officials, CNBC reported, calling the California precautions “fascist.”
Musk moved to Texas shortly after this feud, and moved a third company – the Boring Company – to Lone Star State.
The move means Musk’s flagship companies, Tesla and SpaceX, will both be based in Texas.
Earlier this week, Tesla was ordered to pay a former black worker $ 137 million for creating a racist and hostile work environment, in which he was repeatedly labeled insults and subjected to racist images, including swastikas, in the workplace.
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