It did not take long to know why Tesla, Inc. (TSLA) released their Q3 2021 production and delivery numbers from Austin, Texas instead of Palo Alto, California. During the 2021 Annual Meeting of Shareholders, Tesla CEO Elon Musk announced that the automaker is moving its headquarters to Texas.
“I’m excited to announce that we’re moving our headquarters to Austin, Texas,” Musk said while addressing the shareholders meeting.
Last year when the Tesla Fremont factory faced an unprecedented amount of closure due to the COVID-19 situation, Elon Musk had threatened California that Tesla HQ will be moved to either Nevada or Texas.
At the time, Elon Musk thought that his company was not fairly treated in California while in the rest of the country other automakers were functional with Covid SOPs.
However, Musk did not move the HQ immediately but now it is clear that he never forgot the treatment by Alameda County’s local government officials. To avoid a similar situation in the future Tesla headquarters are now getting shifted to Austin, Texas.
But there are more reasons for Elon Musk to move the company’s HQ operations to Texas. The newly-built Gigafactory Austin, Texas is about to start production of the Tesla Model Y electric SUVs. The automaker is also preparing to start production of the Cybertruck next year.
In addition to these massive Tesla developments in Texas, the SpaceX Starship program is on asteroids in parallel. And Musk has to be there to lead this historic development of making human life multi-planetary.
“Just to be clear, though, we will be continuing to expand our activities in California,” Musk also clarified that Tesla is not actually pulling back from the state. Just recently, Tesla broke ground of its Megafactory in Lathrop, CA, so the expansions are still going to be happening in Cali in the future.
However, even moving the HQ to Texas is a big blow to the state of California as Tesla is the last manufacturer remaining there. Interestingly though, Tesla is currently not able to sell its vehicles directly to customers in the state of Texas.
To further emphasize the importance of Texas for Tesla, the 2021 Annual Shareholders Meeting was also conducted at Gigafactory, Texas.
During his presentation, Musk discussed several things (watch below). One of the important points he shared was the exponential growth of Tesla in vehicle production and deliveries.
This is perhaps the fastest growth of any major automotive manufacturer, Musk said during the presentation while showing the above chart.
He also said that Tesla is willing to keep this growth ahead, chip shortage will be the only thing stopping the automaker from doing so.
Elon Musk is hopeful that at least 50% of current growth will still continue despite the chip shortage. Tesla can also design its own chips as well because of the experience of designing the Full Self-Driving HW 3.0 and HW 4.0 supercomputer processors.