Leading electric vehicle manufacturer Tesla Inc. (TSLA) announced that it will be moving its headquarters from Silicon Valley’s Palo Alto, California to Austin, Texas. This announcement was made by the company’s CEO Elon Musk who says the new headquarters will be located where the company is building a mega car battery manufacturing facility.
“I’m excited to announce that we’re moving our headquarters to Austin, Texas,” said musk last week during the company’s general annual meeting which coincidentally was also held in the Texas factory.
In recent times, several high ranking companies have been moving their headquarters to Texas some of them include personal computer manufacture Hewlett Packard Enterprise (HPE), leading Japanese auto manufacturer Toyota Motor Corp (TYO: 7203) and computer technology company Oracle Corp. (ORCL).
Among reasons why these companies are ditching California includes high taxes and high living costs. On the other hand, Texas is being considered favorable due to its cheap labor and less strict regulations.
Musk said that the company decision to leave California is not a matter of sort if further adding that Tesla is planning to scale up its output levels from its main California plant and Nevada by 50%.