The company made the announcement late Wednesday in a filing
with U.S. securities regulators. CEO Elon Musk had said at the company's annual
meeting in October that the move was coming.
The filing said the relocation from Palo Alto, California,
to what Tesla calls a “Gigafactory” on Harold Green Road near Austin was done
on Wednesday.
In U.S. regulatory filings at the end of last year, Tesla
said it had about 71,000 employees worldwide. Company news releases in 2020
said about 10,000 work at the Palo Alto headquarters and 10,000 are employed at
its factory in Fremont, California.
It wasn't clear if all of the headquarters employees would
be required to move. A message was left Wednesday seeking comment from Tesla,
which has disbanded its media relations department.
Wedbush analyst Daniel Ives said in October that he expects
some of the 10,000 employees in Palo Alto won’t want to leave the Bay Area, but
says a large number will, due to Austin’s lower cost of living. He said he
thinks Tesla will give many the option of staying, but expects 40% to 50% to
make the move.
“The tax incentives down the road, we believe, will be
massive when you compare taxes versus California,” Ives said. “Getting employees
is much cheaper and easier in Texas.”
CEO Elon Musk hinted at making a move ever since a spat with
Alameda County, California, health officials over reopening the factory in
Fremont last year at the start of the coronavirus pandemic.
Musk has said that he has moved his residence from
California to Texas, where there is no state personal income tax.
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