Tesla finally moves its headquarters from Fremont to Texas

Elon Musk has made no secret of his recent distaste for California and his preference for Texas. He called California’s COVID restrictions “fascist, he expressed concerning the lack of opinion on Texas anti-abortion law, and he’s already moved into a tiny house on SpaceX’s Austin campus.

Now he is also moving his business. Musk announced at an investor meeting Thursday that Tesla would officially move its headquarters from Palo Alto to Austin, long before its Texas factory is fully completed.

Initially, when Musk lists its Californian properties for sale, some thought his move to Texas was simply a personal tax dodge. The famous constitution of the state of Texas banned income tax, a provision Musk would likely benefit if he decided to sell any stake in Tesla. From CNBC:

Tesla’s board has given Musk an executive compensation package that can earn him huge stock awards based on increases in the automaker’s market capitalization and other financial goals. If he sells options that expire in 2021, he could generate more than $ 20 billion in proceeds this year, according to InsiderScore.

When Tesla’s third quarter earnings report listed its location as Austin rather than Palo Alto, however, the change has not gone unnoticed. The official news of the move is not a shock, but a confirmation of the rumors that have been circulating for days.

As usual with Tesla, many details have yet to be released. It is not known how many employees will move from Palo Alto to Austin, if any. Musk made it clear that the Fremont plant keep growing, but did not discuss the difference the move could make for employees outside of Tesla’s production facilities.