How Elon Musk’s Employees Felt About Him Moving Tesla HQ to Texas: Report

by Clayton Edwards

Elon Musk started talking about moving Tesla HQ out of California last year. However, many people thought that he was just talking. No one really expected him to uproot his headquarters and move it to Texas. Then, after more than a year of rumors and rumblings, Musk announced the move earlier this month. On October 7th he let the world know that Tesla HQ was moving from Palo Alto, California to Austin, Texas.

Elon Musk let everyone know at the same time. Everyone includes California officials and his team at Tesla, according to Bloomberg. “Elon didn’t even tell his team,” Dee Dee Myers, head of California’s office of business and economic development told the publication on a call. She said that after being asked if Musk informed state officials. Then, she elaborated, “We later talked to the leadership in his offices in California, who did not know until he made the announcement.”

In short, Elon Musk was the only person not surprised by his announcement. He reportedly still hasn’t officially told shareholders or regulators about the move.  

However, that doesn’t mean that Elon Musk plans to move all of the automaker’s facilities to Austin. The production plant in Fremont, California will stay there. In fact, Musk says he plans to increase output at that location by up to 50%.

Musk moved to the Lone Star State last year. So, moving his headquarters there makes things easier for him. However, that is only a portion of the reason why he, and other tech moguls, are heading to Texas.

Why Elon Musk Moved the Tesla HQ

First and foremost, it’s cheaper to live in the Austin area than in California. At the same time, the Lone Star State has fewer regulations on businesses. On top of that, Texas doesn’t tax personal income. Elon Musk is currently the richest man in the world with a net worth of nearly $300 billion, the move will help him keep more of his money.

Then, there is the case of COVID restrictions. Texas lawmakers actively fight any kind of COVID mitigation. On the other hand, Elon Musk had to shut down production in California last year and had to fight to reopen. This caused him to take to Twitter to say that Tesla’s HQ would move to either Nevada or Texas. At that time, he didn’t know if he would continue operations at his Fremont manufacturing plant. Luckily for those workers, he’s decided against shutting it down.

According to New York Post, Texas officials have been offering major tax breaks to corporations in hopes of enticing them to the Lone Star State. Tesla isn’t the first to make the move. Oracle, Hewlett-Packard, and other tech companies have already relocated to Texas from California.