After many years spent in Palo Alto, California, Elon Musk moves Tesla’s headquarters to Austin, Texas.
Established for many years in Silicon Valley, California, the wealthy owner of Tesla has decided to move the headquarters of the famous car brand to Austin, Texas for multiple reasons.
THE REASONS FOR TESLA’S EXODUS
This move is not much of a surprise. Elon Musk has previously threatened to move Tesla’s headquarters out of California after coronavirus lockdowns forced the company to halt production in the state. He decided to move from Los Angeles to Austin and announced it at Tesla’s annual general meeting of shareholders.
“I am happy to announce that we will be moving our headquarters to Austin”
It should be noted that Tesla is now based in a state where the billionaire cannot sell his cars directly to buyers, which has been his approach from the start, given pro-dealer laws. This is why the headquarters of the firm will soon be located in Texas.
A HIGH STROKE OF LIFE
The other reason Elon Musk wants to change states is taxes. Indeed, Elon Musk’s move to Texas means he will pay less tax. The state has no personal income tax, while California has income tax rates of 13%, among the highest in the country. A big advantage for the richest man in the world.
In addition, Texas offers tax breaks for companies to build facilities in the state under the Texas Economic Development Act. An opportunity to be seized by the businessman.
Another reason the CEO of Tesla wants to move to Texas is the optics of getting closer to his other company, Space X, which currently occupies most of his time. The space company’s premises are currently based in California while the launch site is in Boca Chica, South Texas. So why not see Space X’s headquarters in the country in the next few years.
In addition to its curious investments, the company is under fire because just days ago the firm was ordered to pay $ 137 million in damages to a former black worker. The plaintiff accused the automaker of turning a blind eye to discrimination and racial abuse while working at its factory in Fremont, California.