Tesla Headquarters To Move From California To Texas.
Elon Musk has said that Tesla’s new headquarters in Austin, Texas, will have a huge car and battery manufacturing complex.
Tesla Chief Executive Elon Musk said Thursday that the electric car maker plans to move its headquarters from Silicon Valleys Palo Alto, California to Austin, Texas, where it is building a massive car and battery manufacturing complex.
Tesla joins Oracle, HP and Toyota Motor to move the US headquarters to Texas from California, which has relatively high taxes and costs of living. While Silicon Valley is also a hotbed for the development of new ideas and businesses, Texas is known for having cheaper labor and less strict regulation.
“I am excited to announce that we will be moving our headquarters to Austin, Texas,” Musk told the company’s annual meeting, which was held at the Texas automaker.
“This is not a question of Tesla leaving California,” he said, saying he plans to increase production at its main California factory and the Nevada factory by 50 percent. Still, the Fremont, California factory is “stuck” and it’s hard for people to afford a home in California, he said.
Billionaire Musk himself moved to the Lone Star state from California in December to focus on the state’s new electric car makers plant and his rocket company SpaceX, which has a launch site in the southern tip of Texas.
Musk had a difficult relationship at times with California, threatening to move Tesla headquarters and future programs to Texas during a dispute over the closure of the Tesla factory in Fremont, California due to COVID-19, for example.
At the meeting, he displayed a design of what looked like a cowboy-style belt buckle adorned with “Dont Mess With T,” the T in the style of the Tesla logo. The phrase is based on a venerable and popular Texas anti-trash campaign: Don’t mess with Texas. Director’s mandate reduction
Despite some criticism from activist shareholders and a proxy advisory service, shareholders followed the board’s guidance on several key proposals, including the re-election of Kimball Musk, Elons’ brother and James Murdoch as directors of the board.
But they voted in favor of a shareholder proposal to reduce directors’ terms from three years to one year and a proposal regarding additional reporting on diversity and inclusion efforts.
“It’s unfortunate that the shareholders did not agree to remove Murdoch and Brother Musks. But I think they know the pressure is on them,” said Stephen Diamond, a professor at Santa Clara University School of Law.
“They have a lot more work to do on governance. Simply changing the term is just one artifact of a larger governance problem, “said William Klepper, a professor at Columbia Business School.
The advisory firm Institutional Shareholder Services (ISS) had recommended that Tesla investors not re-elect the two directors due to concerns about excessive compensation packages for non-executive board members.
Shareholders also voted against a shareholder proposal requesting a study on the impact of Tesla’s use of arbitration on harassment and discrimination in the workplace.
The proposal, which the board opposed, was brought to the limelight after a former black contract worker in