So, after spending nearly two decades in Los Angeles, Tesla’s CEO himself relocated to Austin last year. The billionaire entrepreneur had justified his personal move with the need to be closer to the two projects that were then occupying most of his time; the development of rockets by SpaceX, and the construction of Tesla’s new facility near Austin.
Addressing a gathering in front of the factory on the outskirts of the city, Musk said “We are pleased to announce that we are moving our headquarters to Austin,”
This is a symbolic move, however, it doesn’t mean that Tesla is leaving the West Coast altogether. “To be clear, we will continue to expand our operations in California,” said Musk.
Some of the primary reasons for moving to Texas according to Musk include, the cost of living in Texas is lower for employees. According to experts, tax levies in Texas are projected to be far lower than in the golden state.
But, the entrepreneur noted, “you can’t expand forever in the San Francisco Bay Area, where density is high, the cost of living is high and traffic is often difficult. Whereas in Austin, the factory is located five minutes from the airport and fifteen minutes from downtown”.
But it’s not just Tesla that is making the move to Texas, other tech giants like HP & Oracle have also followed suit. Texas has been working hard in recent years to attract businesses with several tax incentives. With its highly rated universities and rich cultural life, Austin is certainly attracting a lot of attention. Here’s CNBC on why has Texas now become an attractive place for tech companies.
Musk later turned his attention to business, which he said was good for the company. Tesla announced in early October that it had delivered a record number of vehicles in the third quarter, against the backdrop of a market plagued by a shortage of semiconductors. The automaker is known for delivering a considerable number of vehicles, come the end of the quarter in order to impress investors with strong three-month figures.
In addition to the Texas factory, Tesla is constructing the first-ever European plant in Grünheide, near Berlin in Germany. It is projected that up to 12,000 people would work there and will produce up to 500,000 electric vehicles each year.
You can watch the entire presentation by Tesla below
Source: Youtube
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