Elon Musk Moves to Texas: Why the Tesla CEO Relocated

Elon Musk, serving as CEO of both SpaceX and Tesla, announced on Tuesday his relocation to Texas, thereby validating earlier reports and months of conjecture regarding the billionaire’s potential departure from California – a state he has increasingly voiced concerns about. Musk revealed this change of residence during a discussion at the annual summit of The Wall Street Journal’s CEO Council.

This statement aligns with a prior CNBC report indicating that Musk had communicated his intention to move to Texas to close associates.

This decision arrives alongside several SpaceX and Tesla initiatives underway in Texas, the divestment of multiple properties Musk owned in the Los Angeles area, and his expressed dissatisfaction with the approach taken by California’s governing bodies in managing the COVID-19 pandemic. Earlier in May, Musk initiated legal action against Alameda County and indicated a willingness to relocate the company’s headquarters and subsequent projects to either Texas or Nevada. This legal challenge arose from a growing dispute between Tesla and public health authorities concerning the reopening of its Fremont manufacturing facility during a mandated lockdown related to the coronavirus.

During the interview, Musk expressed the view that California was becoming self-satisfied and failing to recognize its advantageous standing.

Rumors concerning Musk’s potential move to Texas gained traction following Tesla’s selection and commencement of construction on a location near Austin for a facility dedicated to producing the Cybertruck, as well as the Model 3 and Model Y vehicles. Simultaneously, his other private venture, SpaceX, is developing a launch facility in Boca Chica, Texas. Bloomberg reported on Monday that Musk had transferred his foundation to Austin, providing further evidence that he had either completed or was on the verge of completing his move to Texas.

Texas has experienced significant growth in recent years, with cities like Austin, Houston, and Dallas witnessing substantial increases in population. This trend was amplified during the pandemic, as technology professionals based in California sought alternatives to high-cost areas such as Silicon Valley and San Francisco.

An additional benefit for Musk is the absence of a state income tax in Texas.

Despite this relocation, California remains a crucial center for SpaceX and Tesla’s operations. SpaceX maintains its headquarters in Hawthorne, while Tesla’s headquarters are situated in Silicon Valley. The company’s primary factory, responsible for assembling the Model 3, Model X, Model S, and Model Y, is located in Fremont.