Engineering Headquarters at Tesla HQ2 in California article highlights:
- CEO Elon Musk and electric car producer Tesla will establish its engineering headquarters in Palo Alto, California.
- The new “HQ2” facility will occupy the former Hewlett Packard building and focus on research and artificial intelligence development.
- The corporate headquarters will remain in Austin, Texas.
Despite Tesla’s big additions to the Austin area, the super name will set up shop in California. Elon Musk says Tesla’s new engineering headquarters will bring the big “T” back to Palo Alto. So why does Tesla base part of its business in a tax-heavy state like California instead of the Lone Star State?
Newsom referred to his coy comment about Germany rather than Texas. “Eat your heart out, Germany,” Newsom joked. Furthermore, the facility will set up shop in a former Hewlett Packard structure. Reuters said Elon Musk made nostalgic comments about moving into the old tech company’s old facility. “This is a poetic transition from the company that founded Silicon Valley to Tesla,” Musk commented to the media.
In addition, the new facility will focus on research development rather than corporate strategy and leadership.
Is Tesla leaving Texas?
Even though Tesla is creating another presence in Palo Alto, the automaker isn’t giving up its interests in Texas. Not only will Tesla’s headquarters remain in Texas, but CEO Elon Musk also moved to Austin a few years ago.
Musk’s move stemmed from his feelings about the California tax landscape, claiming it was a case of “over-regulation, overlapping, [and] Exhaustion. Since Texas collects no income tax, it is a popular destination for California ex-pats who want to avoid it.
Why would Tesla’s engineering headquarters move to California?
Tesla already has its Fremont, California, site that produces more than 600,000 EVs annually. It’s not a wild move, then, for the automaker to bolster its presence in California while preserving its interests in Texas.
Reuters asked an analyst at morning star, Seth Goldstein, why the electric vehicle maker is making the move with HQ2. “Considering that the Bay Area in California is home to many leading technology companies, it makes sense that Tesla’s engineering headquarters would be located there as a way to attract top talent,” Goldstein said.
Does Tesla own a factory in Texas?
In addition to its corporate headquarters, Tesla operates Giga Texas, a 2,500-acre facility with more than 10 million square feet of factory floor space. The automaker says the facility is the US hub for. Moreover, the controversial Cybertruck will call Giga Texas Home.
As a result, it’s doubtful the electric vehicle producer will shift its entire operation away from Texas.
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