Musk moves Tesla to Texas after ‘fascist’ California lockdown

Tesla is to quit Silicon Valley and transfer its headquarters to Texas after chief executive Elon Musk criticised lockdown measures by local leaders as “fascist”. 

The electric powered vehicle company will transfer from Palo Alto to the Texas capital, Austin, Mr Musk advised a assembly of Tesla shareholders, making it the largest company to quit Silicon Valley for the Lone Star point out however. Tesla is also setting up a huge “gigafactory” in Austin.

Mr Musk advised investors: “I’m excited to announce that we’re going our headquarters to Austin, Texas… Just to be apparent, however, we will go on to grow our routines in California.”

The Tesla billionaire has been an outspoken critic of some of California’s coronavirus policies, at one phase calling them “fascist”, after they compelled the vehicle company to near its plant in Fremont thanks to lockdowns.

In May possibly past year, Mr Musk sued point out officers, claimed Tesla would transfer its headquarters and threatened to shut down producing in California. Mr Musk moved his home to Texas past December.

But Texas has also seemed to lure businesses with worthwhile tax breaks. This year, Texas will give tax breaks totalling $forty four.5bn (£33bn), such as $14bn in residence tax breaks and billions of bucks in breaks for vehicle profits. The point out has no income tax. It also has some of the least expensive power costs in the US and unfastened organization rules. 

California has also proved prohibitively high priced for residing fees, with soaring residence costs. 

Tesla is not the to start with engineering company to abandon Silicon Valley. Palantir, a huge knowledge company launched by Republican supporter Peter Thiel, left California for Denver, Colorado. Other individuals such as HP and Oracle, which was launched by Republican Occasion donor Larry Ellison, have both also relocated.