[ad_1]
Tesla will be leaving Silicon Valley and relocating its headquarters to Texas after CEO Elon Musk criticized the lockdown by local leaders as “fascist”.
The electric car company will move from Palo Alto to the Texas capital Austin, Musk said at a meeting of Tesla shareholders, making it the largest company to have left Silicon Valley for the Lone Star state. Tesla is also building a huge “Gigafactory” in Austin.
Mr. Musk told investors, “I’m happy to announce that we are moving our headquarters to Austin, Texas … Just to be clear, we will continue to expand our operations in California.”
The Tesla billionaire was an outspoken critic of some of California’s coronavirus policies, once calling them “fascist” after they forced the auto company to close its Fremont plant due to lockdowns.
In May last year, Mr. Musk sued state officials, alleging Tesla was relocating its headquarters and threatening to shut down manufacturing in California. Mr. Musk moved to Texas last December.
But Texas has also tried to lure companies with lucrative tax breaks. This year, Texas will get a total of 44.5 billion in tax breaks. The state has no income tax. It also has some of the lowest energy prices in the US and loose business regulations.
California has also proven prohibitive for the cost of living, with home prices rising.
Tesla isn’t the first tech company to leave Silicon Valley. Palantir, a big data company founded by Republican supporter Peter Thiel, left California for Denver, Colorado. Others, including HP and Oracle, founded by Republican party donor Larry Ellison, have also moved.
[ad_2]
