Home/ Auto News / Elon Musk picks California for Tesla's engineering headquarters

Tesla CEO Elon Musk has announced that he would establish the global engineering headquarters of the posh car in California.

During an event with California Governor Gavin Newsom, Musk said, " This is I think the poetic transition from the company that founded Silicon Valley to Tesla".

He said California should still be cautious about taxes and regulations.

The new Tesla engineering headquarters will be in a former Hewlett Packard building in Palo Alto.

Further, the California governor bragged that his state was the biggest manufacturing center in the nation, but he did not aim his remarks at Texas. "Eat your heart out, Germany," he joked, as the news came not long after Tesla said it would focus battery cell production in the United States in light of federal incentives in the Inflation Reduction Act. Tesla is one of the first companies to declare such a strategy shift prompted by the legislation.

Musk had moved Tesla's headquarters to Texas over two years ago. At that time, the billionaire lamented that California had become complacent for innovators.

And during the early period of the Covid-19 pandemic, Musk blasted officials in California for shelter-in-place orders, calling the restrictions a violation of the people's rights and equating them with fascism.

Both California and Texas are political and business rivals. Democratic-controlled California, the most populous US state, has more electric vehicles than any other. Second-ranked Texas is known for relatively light regulation and is the heart of the nation's oil-and-gas industry.

Tesla's original car factory is located in Fremont, California, having the capacity to make around 650,000 vehicles a year.

The EV maker acquired a plant from a joint venture of General Motors Co and Toyota Motor Corp in Fremont in 2010.

The automaker later opened its plants around Austin, Berlin, and Shanghai. Tesla's China factory has grown to be its largest.

The electric car maker has manufactured luxurious cars such as the Model S luxury sedan, Model-X SUV, Model-3, and model-Y, respectively.

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Updated: 23 Feb 2023, 09:53 AM IST
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