At Tesla’s shareholder meeting, Elon Musk announced that the self-driving electric-car company will move its headquarters to Texas from California. The move comes after increased tension between Musk and local politicians due to the company’s response to COVID-19.
In addition, California is also a difficult area for Tesla staff to find affordable housing, and Musk said, “There’s a limit to how big you can scale it in the Bay Area. In Austin, our factory is like five minutes from the airport, 15 minutes from downtown.”
Tesla is filing a lawsuit against Alameda County immediately. The unelected & ignorant “Interim Health Officer” of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!
— Elon Musk (@elonmusk) May 9, 2020
According to CNBC, Musk relocating to Texas would also result in him paying less tax. The state has no personal income tax, whereas Calfornia has some of the United States’ highest income tax rates. Additionally, California has stricter labour laws, whereas Texas is known for cheaper labour and laxer regulation.