Tesla has officially moved its headquarters to Austin, Texas from the former site in Silicon Valley.
The car manufacturer first hinted at the move last year while chief executive Elon Musk was fighting with Californian officials about Covid-19 lockdowns that forced it to halt production at its Fremont factory. It confirmed that the move has been made to the Gigafactory under construction in Austin during a filing made with U.S. securities regulators.
As of 2020, there were roughly 10,000 individuals working at Tesla’s headquarters in Palo Alto, California. It is uncertain if all these employees will be required to move but speaking with Fox 11, Wedbush analyst Daniel Ives suggested that Tesla will offer some the option of staying in California while up to 50 percent may make the move, partly due to the lower cost of living in Austin.
“The tax incentives down the road, we believe, will be massive when you compare taxes versus California,” Ives said. “Getting employees is much cheaper and easier in Texas.”
It recently emerged that Tesla will spend more than $1 billion on its new factory in Austin, Texas, and plans to finish construction of the general assembly, paint, casting, stamping, and body shop facilities by December 31.
The Tesla Model Y will be the first model produced at the factory but when it is fully operational, it will also build the Model 3, Cybertruck, and Semi. Construction of the Texas site started in the summer of 2020 and it is expected to create 10,000 jobs.