In Texas, Tesla doesn’t stop at just building a new factory. In fact, after more than a decade, the corporate headquarters of Elon Musk left California, and the city of Palo Alto, for Texas.
Tesla quit Silicon Valley
Elon Musk used Tesla’s annual general meeting of shareholders to break the big news. Headquarters Packs Up and Moves to Austin, Texas. This isn’t much of a surprise in and of itself, given that Tesla’s CEO had previously threatened to move the headquarters away from the West Coast.
Indeed, in 2020, the multiple confinements linked to the Covid-19 pandemic had forced the company to stop production for a time. Restrictions that Elon Musk had really not liked. The businessman had described the latter as being “fascist”. He had subsequently left Los Angeles to prefer Austin.
But moving Tesla’s head office to Texas is particularly good when it comes to taxation. Indeed, this move will allow Elon Musk to pay less tax. Yes, the state is known for its lack of income tax. Conversely, California has the highest tax rate in the United States. A thoughtful choice …
However, Tesla is not completely abandoning California. Elon Musk said he wanted to continue expanding his activities there. But he says there is a limit to expanding in San Francisco Bay. Life there is extremely expensive and forces many employees to settle far from their workplace. An unenviable lifestyle.
If Silicon Valley has long been “the place to be”For tech companies like Tesla, Facebook, Google and Apple, the tide seems to have turned. Texas is gradually establishing itself as an interesting city for many tech companies like Oracle.