Tesla is moving its headquarters to Austin, Texas, CEO Elon Musk said at a shareholders meeting on Thursday, according to CNBC. The company is moving from Palo Alto, California.
The meeting was held outside of Austin at Tesla's vehicle assembly plant undergoing construction.
Musk noted that in Palo Alto, it's "tough for people to afford houses, and people have to come in from far away....There's a limit to how big you can scale in the Bay Area." Still, Tesla plans to increase production in California regardless of the move.
(Read more: Elon Musk's SpaceX rockets are consuming a tiny Texas town)
Musk has had issues with California officials for quite some time, melting down at an April 2020 earnings meeting about COVID-19 shut-downs impacting operations at Tesla's main California factory. Meanwhile, he celebrated Texas' decision to open businesses.
Tech companies who've moved, or considered moving, from Silicon Valley to Texas have had to consider their responsibilities in the face of Texas' abortion ban. Musk has not made his position on this clear.
"In general, I believe government should rarely impose its will upon the people, and, when doing so, should aspire to maximize their cumulative happiness," he said in a tweet. "That said, I would prefer to stay out of politics."
Boca Chica Village, Texas is home to a SpaceX launch site, which residents have complained about for years. It is home to many SpaceX employees, and is Musk's primary residence.
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