Tesla will relocate its headquarters from Palo Alto, California to Austin, Texas, and CEO Elon Musk announced at a shareholders’ meeting Thursday.
The conference was held at Tesla’s vehicle assembly plant, built on the outskirts of Austin, at a facility adjacent to the Colorado River near the city’s airport.
However, despite the relocation of its headquarters, it plans to increase production at its California plant.
“To be clear we will be continuing to expand our activities in California,” Musk said. “Our intention is to increase output from Fremont and Giga Nevada by 50%. If you go to our Fremont factory it’s jammed.”
But, he added, “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.”
It was said that it would take some time for the factory in Austin to be fully produced even after it was completed.
Mr. Musk said Tesla would take less time to build a factory than it would bring mass production. For example, the Tesla plant in Shanghai was built in 11 months, but it took a year to reach mass production. He hopes the new Tesla factory will continue near Austin in Shanghai.