Tesla calls California its home since the automaker started in 2003 but Elon Musk has plans of leaving the state for good. The company CEO is reportedly taking residence in Texas and the decision could lead Tesla to move to a new headquarter as well.
Musk has been a frequent visitor of Texas in the past years and it came as no surprise because the Tesla chief is building a Gigafactory in Austin. It appears now that the executive is falling in love with the state and is readying to make the jump from California.
Musk's close friends made claims that he is selling his properties in preparation for an eventual move away. CNBC reported that the information came from people with knowledge of the CEO's plans and they requested anonymity as they provided details from a private conversation.
The purported transfer seemed supported by Musk's increasing presence in Texas. Space X is in the state since its inception in 2003 and soon Giga Austin will commence operations, giving him more reason to set up a new home in the state.
Most importantly, however, Musk is finding Texas as a friendlier state for his business activities. In May this year and at the height of the coronavirus lockdown, the outspoken CEO sparred with California's government officials for not exempting Tesla from restrictions.
Eventually, Tesla got the clearance to resume manufacturing activities at its Fremont factory but the incident prompted Musk to consider moving his business from the Golden State. If he would go ahead with the plan, one likely motivation for the Tesla boss is the lack of income tax in Texas, added the report.
In contrast, the same form of the levy is the highest in the United States, and changing location makes good business sense for Tesla.
That is why Musk making good on his earlier threat to deny California his growing business should not come as a surprise. As Teslarati recalled, the chief's disappointment with state authorities led to a declaration of leaving on a personal capacity.
He added that on moving out, Fremont will remain as Tesla's HQ but for that to continue over the long-term will depend greatly on future circumstances.
But it's should be safe to assume that Texas is a strong candidate to host Tesla if the EV maker decides to set up a new home. Already, Musk has established a rapport with the state's officials and Texas governor Greg Abbott has expresses excitement on the likelihood that Tesla will continue to expand in the state.
For his part, Musk earlier indicated that he has big plans for Tesla in Texas. He revealed that Giga Austin will be the factory to mass produce the long-anticipated Cybertruck and Roadster.
