Tesla says it has officially moved the company’s headquarters from Silicon Valley to a large plant under construction outside Austin, Texas.
The company made the announcement late Wednesday in a filing with US securities regulators. CEO Elon Musk had said at the company’s annual meeting in October that such a move was coming.
The recording said the transfer from Palo Alto, California, to what Tesla calls its “Giga Factory” on Harold Green Road near Austin, took place on Wednesday.
In US regulatory filings at the end of last year, Tesla said it had about 71,000 employees worldwide. The company’s news releases in 2020 said about 10,000 jobs at its Palo Alto headquarters and 10,000 employees at its factory in Fremont, California.
It was not clear if all Headquarters staff would be required to relocate. I left a message Wednesday asking for comment from Tesla, which has dissolved its media relations division.
Wedbush analyst Daniel Ives said in October he expects that some of the 10,000 employees in Palo Alto will not want to leave the Bay Area, but says a large number will because of the lower cost of living in Austin. He said he thinks Tesla will give many the option to stay, but he expects 40% to 50% to make the move.
“We think the tax incentives in the future will be massive when you compare the taxes to California,” Ives said. “It’s much cheaper and easier to get employees in Texas.”
CEO Elon Musk has hinted at a move since a spat with Alameda County, California health officials over reopening the factory in Fremont last year at the start of the coronavirus pandemic.
Musk said he has moved his residence from California to Texas, where there is no state personal income tax.