Tesla is leaving California’s Silicon Valley behind for Texas. The company’s chief executive officer, Elon Musk, announced the planned move for the electric automaker, which will see its headquarters relocated from Palo Alto, California, to Austin, Texas. While Tesla’s business operations are leaving the Golden State, it will still continue to manufacture new vehicles at its Fremont assembly plant there.
Tesla is not the first automaker to relocate its U.S. operations to the Lonestar State. Both Toyota and McLaren (its American arm, that is) now call Texas home. Toyota’s U.S. headquarters was previously located in Torrance, California, while McLaren’s was in New York City, New York.
Interestingly, Texas prevents the sale of Teslas in the state due to its direct-sales model, as the state requires new cars to be sold through dealers and not directly to consumers. It’s possible Tesla will find a workaround to this issue, though. For instance, New Mexico has a similar ban on direct sales of new vehicles, however, Tesla is working around this issue by opening its first store in New Mexico on tribal land that is not subject to the state’s laws.
Tesla’s headquarters will not be the company’s only facility in Texas, either, as the automaker also has a factory in the state that’s set to build the upcoming Cybertruck.
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