Tesla formally moves headquarters to Austin, TX

Credit: Kimbal Musk/Twitter

Elon Musk announced that Austin, Texas has formally become the site of the company’s main headquarters. The update was shared at the 2021 Shareholders Meeting.

“I’m excited to announce that we’ll be moving our headquarters to Austin, Texas,” Elon Musk said to much applause at the latest Annual Shareholders Meeting.

Texas’ new place in Tesla’s operations may not come as a surprise to those following the developments surrounding the company’s newest Gigafactory. Elon Musk’s other companies have seemingly moved to Texas as well, including The Boring Company.

The Tesla CEO listed a few milestones Giga Texas might hit in the near term. He estimated that Giga Texas Model Y production could start by the end of this year and would probably reach volume production by the end of next year. Musk predicted that Tesla would deliver a few Model Y vehicles from Giga Texas this year.

Even though Tesla is moving its headquarters to Texas, the company will still operate its factory in Fremont and Nevada. In fact, Tesla plans to increase the Fremont Factory and Giga Nevada’s capacity.

“Just to be clear, though, we will be continuing to expand our activities in California. This is not a matter of Tesla leaving California,” Musk clarified. “As I said, our intention is to actually increase output from Fremont and Giga Nevada by 50%.”

However, Tesla has reached a point where it’s become quite difficult to scale up in the Bay Area. California’s rising housing prices have also become hard on Tesla’s employees.

“It’s tough for people to afford houses, and lots of people have to come in from far away. We’re taking this as far as possible, but there’s a limit to how much you can scale in the Bay Area. But here in Austin, the factory is five minutes from the airport and 15 minutes from downtown,” Musk said.

Musk also remarked that while 4680 cell production in Texas will not be starting soon, Tesla’s pilot line at Kato Rd, which is only a mile away from the Fremont factory, would have enough capacity for now.

“We are making 4680s at our pilot plant in California, which is a big plant by normal standards. It’s like capable of 10GWh a year. That factory will be able to make more than enough cells for Giga Texas to scale Model Y production,” Musk explained.

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Tesla formally moves headquarters to Austin, TX
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