Tesla founder Elon Musk is moving his company’s headquarters from California to Texas.
“I’m exited to announce that we’re moving our headquarter to Austin, Texas,” said the CEO at a Tesla shareholders meeting on Thursday.
At present, the electric car company is based in Silicon Valley, in Palo Alto, California. But, given the lack of housing affordability and long commutes, he said that there were limits to how much he could grow Tesla in California.
There had been much speculation that Musk was considering a move for his company after he, himself, moved to Texas in December of 2020. Meanwhile, SpaceX, also moved and his biggest projects for that company are being planned out of South Texas.
In May of 2020, Musk has treated Ito move the company’s headquarter to Texas or Nevada after local officials questioned the safety of his Fremont factory due to the pandemic.
The move is certainly expected to provide and economic boost for Texas. Local government entities had approved millions in tax breaks to help entice the company to relocate to Central Texas.
An increasing number of tech company, including Apple, Facebook, Google and Amazon, have all recently expanded operation in Central Texas in part because of the lower tax environment that makes the region more hospitable for corporations and workers. Texas, for example, like New Hampshire, Florida and Nevada, has no income tax.
Shares of Tesla (TSLA) traded down 0.63% in early trading Friday to $788.44 per share.