Elon Musk says Tesla will move HQ from California to Texas

Tesla volition relocate its office from Palo Alto, California, to Austin, Texas, though the electrical car shaper volition support expanding its manufacturing capableness successful the Golden State, CEO Elon Musk said Thursday.

Musk, who past twelvemonth said helium was moving to Texas from California, gave nary timeline for the determination erstwhile helium addressed shareholders astatine Tesla's annual meeting.

In the aboriginal days of the coronavirus pandemic, Musk clashed with San Francisco Bay Area wellness authorities trying to enforce shelter-in-place orders. At the time, helium threatened to relocate Tesla's operations to Texas oregon Nevada.

On Thursday, however, Musk cited the outgo of lodging successful the Bay Area that has made it pugnacious for galore radical to go homeowners, translating into agelong commutes.

"We're taking it arsenic acold arsenic possible, but there's a bounds however large you tin standard it successful the Bay Area," helium said Thursday. "Just to beryllium clear, though, we volition beryllium continuing to grow our activities successful California. This is not a substance of leaving California."

Musk stressed helium plans to grow the company's mill successful Fremont, California, wherever Tesla's Models S, X, Y and 3 vehicles are built, successful hopes of expanding its output by 50%.

The announcement drew cheers and applause from the tiny assemblage astatine Tesla's manufacturing plant successful Austin, wherever Musk delivered his remarks, which were webcast live.

While applauding Tesla's announcement that it volition grow accumulation successful Fremont, Bay Area concern leaders bemoaned the office determination arsenic the latest motion of the region's ongoing issues.

"Mr. Musk's announcement highlights yet again the urgency for California to code our lodging affordability situation and the galore different challenges that marque it truthful hard for companies to turn here," said Jim Wunderman, president and CEO of the concern advocacy radical Bay Area Council.

Last year, tech elephantine Oracle Corp. decided to determination its office from Silicon Valley to Austin, saying the determination would springiness its employees much flexibility astir wherever and however they work. One of Silicon Valley's founding companies, Hewlett Packard Enterprise, has besides said it volition determination to the Houston area.

At Thursday's gathering Musk besides touted the company's grounds conveyance deliveries this year, portion noting that planetary supply-chain disruptions that person led to a shortage of machine chips stay a challenge.

"It looks similar we person a bully accidental of maintaining that into the future," helium said. "Basically, if we get the chips, we tin bash it."

As a result, accumulation of Tesla's angular Cybertruck pickup isn't apt to statesman earlier the extremity of 2022, Musk said, estimating that the institution would scope "volume" accumulation connected the conveyance successful 2023.

"We should beryllium done our severest proviso concatenation shortages successful '23," helium said. "I'm optimistic that volition beryllium the case."

Tesla said past week that it delivered 241,300 electrical vehicles successful the 3rd 4th adjacent arsenic it wrestled with the shortage of machine chips that has deed the full car industry.

The company's income from July done September bushed Wall Street estimates of 227,000 income worldwide, according to information supplier FactSet.

Third-quarter income roseate 72% implicit the 140,000 deliveries Tesla made for the aforesaid play a twelvemonth ago.

So acold this year, Tesla has sold astir 627,300 vehicles. That puts it connected gait to soundly bushed past year's full of 499,550.

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