Tesla officially moves headquarters from California to Texas
The firm said the relocation from Palo Alto to what Tesla calls a “gigafactory” near Austin was done on Wednesday.
Tesla says it has officially moved its corporate headquarters from Silicon Valley to a large factory under construction near Austin, Texas.
The company made the announcement late on Wednesday in a filing with US securities regulators.
Chief executive Elon Musk had said at the company’s annual meeting in October that the move was coming.
The filing said the relocation from Palo Alto, California, to what Tesla calls a “gigafactory” near Austin was done on Wednesday.
It was not clear if all of the headquarters employees would be required to move.
Wedbush analyst Daniel Ives said in October that he expected some of the 10,000 employees in Palo Alto will not want to leave the Bay Area, but a large number will, due to Austin’s lower cost of living.
He said he thinks Tesla will give many the option of staying, but expects 40% to 50% to make the move.
“The tax incentives down the road, we believe, will be massive when you compare taxes versus California,” Mr Ives said. “Getting employees is much cheaper and easier in Texas.”
Mr Musk hinted at making a move after a dispute with health officials in Alameda County, California, over reopening the factory in Fremont last year at the start of the coronavirus pandemic.
He has said he has moved his residence from California to Texas, where there is no state personal income tax.
