Originally founded in 2003, Tesla headquarters was built from the ground up in the heart of Palo Alto, California. However, as of this past Thursday, October 7, 2021, CEO Elon Musk surprisingly announced that the company will be switching locations from its current place to Austin, Texas. He has been hinting at the change of position to his audience for quite some time now and has finally come to the conclusion that this is the best move for the future plans hidden within the corporation. Musk’s other projects coming out of his aerospace business, SpaceX, are also currently being based out of the Austin area.
He released a statement on behalf of the sudden change that simply said, “I am excited to announce that we are moving our headquarters to Austin, Texas. Just to be clear, though, we will be continuing to expand our activities in California. This is not a matter of Tesla leaving California. Our intention is to actually increase output from Fremont and from a gig in Nevada by 50%.” It seems to be that Elon’s main concern with this transfer is that people will become worried about the company’s future endeavors in the California area; he and his team are taking every precaution to ensure that there is nothing to fear.
The main reason behind this move is unsurprisingly due to the immense amount of financial differences. The business reported that it had accepted approximately “$465 million in low-interest loans to accelerate the production of affordable, fuel-efficient electric vehicles” during the change process. Jason Schloetzer, a professor at Georgetown University’s McDonough School of Business, predicted the future of Tesla’s project locations when he stated, “In Austin, they’re going to have a pretty large workforce there when that facility opens. I would anticipate they may consider drawing down production in California over the medium term. It seems like a natural evolution of decisions they’ve made recently to relocate their business out of California.” Only time will tell to see if Elon Musk will hold up to his future plans and promises, or if professor Schloetzer will genuinely be correct about the future of the Tesla company.