More than a year after him burst on Twitter regarding the relocation of major operations from Fremont, California, Tesla CEO Musk finally confirmed the move. Over time, however, his posture also softened. He announced that the Fremont plant would not only be maintained, but that its production capacity would be increased by up to 50 percent. at the annual shareholder meeting.
Last year, as the United States faced the COVID-19 pandemic and California companies were ordered to close operations, Musk turned to Twitter to call the Alameda County Health Officer, “ignorant” and said he was acting against “constitutional freedoms” before announcing that the company would move to Texas immediately.
Honestly, this is the last straw. Tesla will now move its headquarters and future programs to Texas / Nevada immediately. If we keep Fremont’s manufacturing business at all, it will depend on how Tesla behaves in the future. Tesla is the last carmaker left in California.
– Elon Musk (@elonmusk) May 9, 2020
The lawsuit was dropped the same month after the company was allowed to resume operations, but Musk was still making that move.
Speaking at the annual meeting of shareholders held in Giga Factory in TexasMusk pointed to cheaper housing for his employees and lower taxes in Texas. The BBC reported that technology companies Oracle, Hewlett-Packard and carmaker Toyota are others that have moved to Texas from California. The western state has stronger labor laws, along with less stringent regulations, and cheaper labor in Texas is also likely to have influenced that decision.
NPR station in Austin, KUT 90.5 reported that the company displays a Texas-style logo immediately after the announcement, with the words “Don’t get confused” under the T-shaped company logo. Although it seems that last year’s incident was not forgotten by the company and its CEO, Musk clarified the situation as: “It’s not about Tesla leaving California.” He added that the company looks forward to increasing its production at the Fremont plant by another 50 per cent.
Musk’s other company, SpaceX, is currently headquartered in Hawthorne, California, along with a manufacturing facility and test site called Starbase on the southeastern tip of the state. Over the past year, Musk has significantly reduced in size and moved into a 400-square-foot (37.16-square-meter) apartment near Starbase. according to Forbes.
KUT also reported that Musk was in Austin in February 2021 when the state was facing an eclipse. “I was actually … in a house without electricity, without power, without heating, without internet, in fact, I couldn’t even get to a grocery store,” Musk said. It’s hardly a surprise that he wants to feeds the state in the near future.