about 10,000 work at the Palo Alto headquarters
and 10,000 are employed at its factory in
Fremont, California.
It wasn’t clear if all of the headquarters employees
would be required to move. A message was left
Wednesday seeking comment from Tesla, which
has disbanded its media relations department.
Wedbush analyst Daniel Ives said in October that
he expects some of the 10,000 employees in Palo
Alto won’t want to leave the Bay Area, but says
a large number will, due to Austin’s lower cost
of living. He said he thinks Tesla will give many
the option of staying, but expects 40% to 50% to
make the move.
“The tax incentives down the road, we believe,
will be massive when you compare taxes versus
California,” Ives said. “Getting employees is much
cheaper and easier in Texas.”
CEO Elon Musk hinted at making a move
ever since a spat with Alameda County,
California, health officials over reopening the
factory in Fremont last year at the start of the
coronavirus pandemic.
Musk has said that he has moved his residence
from California to Texas, where there is no state
personal income tax.