Tesla is leaving California
At first, it was Grimes now it is California. The CEO of Tesla, Elon Musk had said that Tesla is taking a leave from Palo Alto-CA which was the home of Tesla since it was found in the year 2003. Tesla is now moving to Austin, TX where it is building a huge factory complex.
Yesterday, at the meeting of the shareholders of the company Elon Musk had said, “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”.
Musk had made a point.
- As per a new Projected report, the median price for buying a house in California is about to reach $834,000 in the year 2022, after in increased by 20 % in 2021.
- Silicon Valley is way more expensive. The median price for a house in the metro area is $1.7 million.
Push & Pull
About the push: The relationship of California with Tesla had hit the rocks in the year 2020. Elon Musk had railed against the state government of California for their Covid-19 restrictions in 2020’s spring when Musk had to put a halt on production at the plant of Tesla in Foremont. Musk even called the covid restrictions of Alameda County to be “fascist”.
About the pull: Musk has personally moved to the area of Austin from Los Angeles so that he can be closer to the other 2 companies, the Boring Company & SpaceX, both the companies have operations in Texas.
The consideration for the move:
The compensation package of Musk is eye-watering tied to the performance of Tesla, & if Musk decides to sell the options that he has then he would be having a much lower bill of tax in Texas compared to that he had in California.
However, the company is not leaving California in the dust. Musk has said that the company will be ramping up the output at the Foremont factory, & is also building up a “Megafactory,” which is making the company’s energy storage product, in the Central Valley in California.