Elon Musk says Tesla is moving HQ to Austin from Palo Alto, citing affordable housing, room to expand


Tesla CEO Elon Musk announced Thursday that he is moving the company's headquarters from Silicon Valley to Austin, though he did not give a time frame for the move. "Just to be clear, though, we will be continuing to expand our activities in California," he said at a company shareholder meeting. "This is not a matter of Tesla leaving California." Musk said Tesla will expand its factory in Fremont, California, where more than 10,000 workers build the Model S, X, Y, and 3 vehicles.
Musk has been forecasting a move to Texas since May 2020, when he tweeted out his displeasure at California officials for COVID-19 safety precautions he said were hurting production. On Thursday, Musk suggested the move was due to size constraints at the Fremont plant and Tesla's Palo Alto headquarters, as well as the dearth of affordable housing in the Bay Area. "It's tough for people to afford houses and a lot of people have to come in from far away," he said. "There's a limit to how big you can scale in the Bay Area."
Tesla is building out a factory in Austin — he announced the move via livestream from the factory floor — and analysts noted that Musk has already moved to Texas and is growing his SpaceX operation on the Texas Gulf coast. But other Silicon Valley giants have also recently announced moves to Texas, including Oracle and Hewlett Packard Enterprises.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
See the bright lights from these 7 big-city hotels
The Week Recommends Immerse yourself in culture, history and nightlife
-
Scientists want to regrow human limbs. Salamanders could lead the way.
Under the radar Humans may already have the genetic mechanism necessary
-
Sudoku medium: June 25, 2025
The Week's daily medium sudoku puzzle
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
How could Tesla replace Elon Musk?
Today's Big Question The company's CEO is its 'greatest asset and gravest risk'
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Elon Musk: has he made Tesla toxic?
Talking Point Musk's political antics have given him the 'reverse Midas touch' when it comes to his EV empire