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Elon Musk is planning to move away from California, will Tesla go with him?
Tesla frontman Elon Musk has told friends and close associates that he is planning to move to Texas and away from California. A new report from CNBC says that the CEO has plans to leave the Golden State and become a resident of the Lone Star State instead, but the reasons are not entirely known. The big question is: Will Tesla’s headquarters go with him, or will operations remain in California, where the automaker has called home since its establishment in 2003?
CNBC’s report indicates that Musk’s move may have to do with his discontent for COVID-19 restrictions, which he disagreed with vocally earlier this year. During the Q1 2020 Earnings Call that Tesla held in April, Musk explained that lockdowns were fascist and that California’s politicians should give people “their g*ddamn freedom” back. This led to the CEO gaining an extreme discontent for the handling of the situation, which shut down Tesla’s Fremont production plant for over a month and a half.
After the shutdown and Alameda County Health Officials questioning whether Tesla was ready for reopening, Musk said that Tesla would “move its HQ and future programs to Texas/Nevada immediately.”
Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen on how Tesla is treated in the future. Tesla is the last carmaker left in CA.
— Elon Musk (@elonmusk) May 9, 2020
The CEO even took some steps to hint toward his departure from California. Eventually, Musk sold his possessions and houses, claiming that he was completely ridding himself of things that weigh him down and that he was fully focused on the mission to get people to Mars. After selling his California estates, some wondered whether Musk would eventually move his company to Texas.
In an interview with Automotive News, Musk sparred with the idea:
“There’s no question that our headquarters will remain in California for the short term. Long term we’ll have to wait and see.”
With Tesla now having a Gigafactory in Texas that will produce several company vehicles for customers in the Eastern half of the country, there is no reason that the company couldn’t establish its base in the state. Musk flies to Texas now, and the Headquarters could be moved relatively easily without much issue. Musk could easily fly back to Fremont when business in California needs to be handled, and considering many of his executives chose Austin as their favorite place to live, he would be close to some of his business associates. In fact, Tesla chose Austin for its new Gigafactory location because of its appeal to company executives.
“When talking to key members of the team that would need to move to Austin from California in order to get the factory going, Austin was their top pick to be totally frank,” Musk said. “That was a big factor in choosing Texas and Austin. Specifically Austin. I guess a lot of people from California, if you ask them what’s the one place you’d move outside of California, it’s Austin.”
When Musk will make the move remains to be seen. However, he is definitely considering it, and it wouldn’t be the worst thing in the world to have him establish a base in a state where he is favorable with local politicians. The CEO and Texas Governor Greg Abbott gave the “Hook em’ Horns” symbol together in a photo op, and the two could see a future partnership that could benefit both parties.
Tesla picks Texas for its Cybertruck factory.
Thanks to .@elonmusk & .@Tesla for embracing our great state.
The Gigafactory will employee thousands of Texans & be a cornerstone for next generation innovation.
It’s been fun to get to know you.
Welcome to Texas. pic.twitter.com/PsnfaEUHaz— Greg Abbott (@GregAbbott_TX) July 22, 2020
Elon Musk
xAI’s Grok approved for Pentagon classified systems: report
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.
Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.
Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards.
Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD.
Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible.
The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.
Elon Musk
Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X.
Elon Musk has pushed back on claims that Starlink’s recent price reductions are tied to Amazon’s Kuiper project.
In a post on X, Musk responded directly to a report suggesting that Starlink was cutting prices and offering free hardware to partners ahead of a planned IPO and increased competition from Kuiper.
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X. “The lower the cost, the more Starlink can be used by people who don’t have much money, especially in the developing world.”
The speculation originated from a post summarizing a report from The Information, which ran with the headline “SpaceX’s Starlink Makes Land Grab as Amazon Threat Looms.” The report stated that SpaceX is aggressively cutting prices and giving free hardware to distribution partners, which was interpreted as a reaction to Amazon’s Kuiper’s upcoming rollout and possible IPO.
In a way, Musk’s comments could be quite accurate considering Starlink’s current scale. The constellation currently has more than 9,700 satellites in operation today, making it by far the largest satellite broadband network in operation. It has also managed to grow its user base to 10 million active customers across more than 150 countries worldwide.
Amazon’s Kuiper, by comparison, has launched approximately 211 satellites to date, as per data from SatelliteMap.Space, some of which were launched by SpaceX’s Falcon 9 rocket. Starlink surpassed that number in early January 2020, during the early buildout of its first-generation network.
Lower pricing also aligns with Starlink’s broader expansion strategy. SpaceX continues to deploy satellites at a rapid pace using Falcon 9, and future launches aboard Starship are expected to significantly accelerate the constellation’s growth. A larger network improves capacity and global coverage, which can support a broader customer base.
In that context, price reductions can be viewed as a way to match expanding supply with growing demand. Musk’s companies have historically used aggressive pricing strategies to drive adoption at scale, particularly when vertical integration allows costs to decline over time.
News
Tesla Giga Berlin makes a statement of solidarity amid IG Metall conflict
The display comes as tensions between Tesla and IG Metall continue to escalate.
Tesla Giga Berlin is sending a strong message of solidarity amid its ongoing legal dispute with German union IG Metall.
In a post on social media platform X, Giga Berlin plant manager André Thierig shared an image of the facility’s lobby covered with a large banner that reads: “Progress. Innovation. Success.” He added that the slogan reflects what the facility has stood for since Day One.
“Our lobby at Giga Berlin covered in a huge banner these days. Progress. Innovation. Success – this is what we stand for since we started production in 2022 and how we will go into our future!” Thierig wrote in his post on X.
The display comes as tensions between Tesla and IG Metall continue to escalate.
The dispute began after Tesla accused a union representative of secretly recording a works council meeting at Giga Berlin. Tesla stated that it filed a criminal complaint after the alleged incident. Police later confirmed they had seized a computer belonging to an IG Metall member as part of their investigation.
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote on X at the time.
IG Metall denied the accusation and characterized Tesla’s move as an election tactic ahead of upcoming works council elections. The union subsequently filed a defamation complaint against Thierig. Authorities later confirmed that an investigation had been opened in connection with the matter.
Giga Berlin began production in 2022 and has since become one of Tesla’s key European manufacturing hubs, producing the Model Y, the company’s best-selling vehicle. The facility has expanded capacity over the past years despite environmental protests, labor disputes, and regulatory scrutiny.