Elon Musk says Austin, Texas will be ‘biggest boomtown’ US has seen in 50 years
Susan Li on Elon Musk
In May of last year, Elon Musk—frustrated with California’s increasingly draconian governance—threatened to move Tesla’s headquarters to Texas. A month later, Tesla was negotiating to build its massive new factory outside of Austin. By December, Musk himself made the move to the Lone Star State.
Now, 17 months later, Musk has announced that Tesla’s headquarters is moving from Palo Alto, California to Austin, Texas.
Corporate headquarters moves make headlines, but they don’t employ as many people as manufacturing operations do. Not all personnel will make the move with the HQ, though—it depends on corporate policy and the personal desires of the workforce as they seek to balance leaving friends and family (and high taxes and skyrocketing housing costs) for Texas’s lower cost of living and hot summers.
Firms leaving California for Texas stand to reduce their operating costs by 32 percent.
ELON MUSK ANNOUNCES TESLA IS MOVING ITS HEADQUARTERS TO AUSTIN
Last year, Musk was highly critical of California’s heavy regulatory burden, suggesting that big companies can absorb regulatory compliance into their overhead while startups struggle: "You have a forest of redwoods and the little trees can’t grow." California should "just get out of the way" of innovators, Musk added.