Tesla to base engineering headquarters in California

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Tesla in December 2021 moved its corporate headquarters from Silicon Valley’s Palo Alto, California, to Austin, Texas, where it is operating a new car factory. Musk’s SpaceX rocket company also has a launch site in the southern tip of Texas.

Billionaire Musk himself moved from Los Angeles to the Lone Star State, which does not have state income tax.

But the company’s first factory was in the San Francisco Bay Area city of Fremont, and Musk said on Wednesday that it would produce more than 600,000 vehicles this year.

California remains a key source of talent for tech companies, and the Tesla engineering headquarters will be in a former Hewlett Packard building in Palo Alto. “This is a poetic transition from the company that founded Silicon Valley to Tesla,” Musk said.

Musk previously criticized California for “overregulation, overlitigation, overtaxation.”

The billionaire’s relationship with California was rocky at times. In 2020, for instance, he threatened to move Tesla’s headquarters and future programs to Texas during a dispute over the closure of the EV maker’s Fremont factory due to COVID-19.