Despite moving its corporate headquarters to Texas, Tesla now considers California its global engineering home base. Elon Musk said a Palo Alto engineering hub will be “effectively a headquarters of Tesla.” The CEO added that the company’s plant in Fremont, which it bought in 2010 from a joint venture of General Motors and Toyota Motor Corp., will increase production to over 600,000 vehicles this year.
Tesla will use a former Hewlett-Packard building in Palo Alto as its new engineering headquarters. “This is a poetic transition from the company that founded Silicon Valley to Tesla,” Musk said.
The move is an about-face from the CEO’s previous comments about the state. Musk didn’t mince words about California’s regulations and taxes when he moved Tesla’s official corporate headquarters to Texas in 2021, complaining about “overregulation, overlitigation, over-taxation.” He tweeted about California pandemic lockdowns the previous year, “Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be [dependent] on how Tesla is treated in the future. Tesla is the last carmaker left in CA.”
Following news of the Inflation Reduction Act incentives, Tesla will shift its battery-production focus from Germany to the US. Musk appeared with Gavin Newsom at an event on Wednesday, where the California governor poked fun at the move: “Eat your heart out, Germany.” California, which has more electric vehicles than any other state, provided tax bonuses to Tesla on its way to growing into the EV superpower it is today; Texas has minimal regulation and taxes by comparison.