What happened? Elan Musk has been talking for some time about moving Tesla to Texas, but those words will soon become concrete. As the CEO announced at the latest Tesla shareholder meeting, the company's headquarters will be moved to Austin. The California headquarters, and what Musk called "fascist" Coweed laws, is pushing for an area with lower taxes and lower housing costs for employees.
This is a big change for Tesla. He's been operating out of California for years, and this move will likely be a long one. Of course, Musk himself actually lives on a SpaceX property in Texas — so this decision may seem like a natural next step.
However, the reasons for the change are not political in nature. Aside from the restrictive laws prevalent in California, the CEO also feels there is a "limit" on a company growing in the Bay Area. He says the high price of housing means commuting long distances and lots of work for factory workers who have to look for accommodation elsewhere.
However, this does not mean that Tesla will close its California operations. On the contrary, the Fremont plant will remain and will continue to expand production in the future. This wouldn't just be a frontal focus.
Tesla is headquartered in California and has been relocated to Austin, Texas.