Tesla to Move Headquarters to Austin, Texas, Musk Says

Tesla Inc.

TSLA 1.39%

is transferring its headquarters to Austin, Texas, cementing

Elon Musk’s

dedication to the Lone Star State and including to a handful of Silicon Valley corporations which have relocated there.

Chief Government Elon Musk introduced the transfer from Tesla’s Austin-area manufacturing unit, which the corporate started constructing final yr and the place it held its annual shareholder assembly Thursday. He added that Tesla plans to broaden its actions in California however that the corporate’s potential to scale up within the Bay Space is restricted.

“You go to our Fremont manufacturing unit, it’s jammed,” he stated. “We’re like Spam in a can.”

Throughout WSJ’s CEO Council, Tesla chief Elon Musk criticized California as taking innovators as a right. Photograph: Hannibal Hanschke/Reuters

Mr. Musk stated final yr that he had moved to Texas, the place his rocket firm, Area Exploration Applied sciences Corp., or SpaceX, has main operations. He beforehand likened California to a sports activities staff that had grown complacent after a successful streak. Tesla is following within the footsteps of corporations together with

Hewlett Packard Enterprise Co.

—a descendant of what Invoice Hewlett and Dave Packard began in a Palo Alto, Calif., storage—and

Oracle Corp.

, which moved their company headquarters to Texas earlier within the Covid-19 pandemic.

Whereas Tesla overcame snarled world provide chains to ship a report variety of automobiles within the third quarter, Mr. Musk indicated that elements shortages have restricted the corporate’s potential to ship on new, long-promised fashions.

“This yr has been only a fixed wrestle with elements provide,” he stated.

Tesla is more likely to start producing its Cybertruck pickup late subsequent yr, with higher-volume output coming in 2023, Mr. Musk stated. In January, he had been optimistic that the corporate would have the ability to start delivering a couple of of the pickup vans to clients by the top of 2021.

He stated he hoped the corporate can be producing its long-delayed semitrailer truck and a revamped model of its Roadster sports activities automobile in 2023.

“The semi particularly wants lots of cells,” he stated. “It wants lots of cells, lots of chips. We’ve obtained to have sufficient. In any other case it’s pointless.”

Additionally on Thursday, a preliminary vote tally indicated that the Tesla administrators

James Murdoch

and Mr. Musk’s brother, Kimbal Musk, can be re-elected to the corporate’s board, stated the investor-relations chief, Martin Viecha.

The proxy advisory agency Institutional Shareholder Companies had urged buyers to vote in opposition to their re-election over considerations together with excessive government and director compensation. The administrators have served on the board since 2017 and 2004, respectively. The Murdoch household is a serious shareholder in Information Corp, the guardian firm of The Wall Road Journal.

Early tallies instructed that shareholders had signed off on a nonbinding proposal to chop board members’ phrases to 1 yr, from three, and a name to publish extra info on Tesla’s variety and inclusion efforts.

Tech corporations have been among the many earliest to ship staff dwelling in the beginning of the Covid-19 pandemic, and quite a few outstanding gamers within the trade have allowed their staff to work remotely on a everlasting foundation. That shift has prompted many Silicon Valley staff and startup chief executives to relocate to different elements of the nation for cheaper housing, much less visitors and a greater high quality of dwelling.

Texas, and significantly Austin, have attracted extra know-how corporations and startup improvement lately, providing decrease taxes and fewer regulation than California, and more-affordable actual property.

Regardless of taking their headquarters out of California, corporations comparable to Hewlett Packard Enterprise have saved strategic hubs within the Bay Space, which stays the nation’s most vital tech hub. Mr. Musk stated Thursday that Tesla would keep a major presence in California and enhance output from its Fremont, Calif., manufacturing unit.

Write to Rebecca Elliott at [email protected]

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