Musk, who said last year he was moving from California to Texas, gave no timeline for the move when addressing shareholders at Tesla’s annual meeting.
At the start of the coronavirus pandemic, Musk clashed with San Francisco Bay Area health officials trying to enforce shelter-in-place orders. At the time, he threatened to relocate Tesla’s operations to Texas or Nevada.
On Thursday, however, Musk cited the cost of housing in the Bay Area that has made it difficult for many people to become homeowners, resulting in long journeys.
“We’re going as far as we can get, but there’s a limit to how big you can get in the Bay Area,” he said Thursday. “Just to be clear, however, we will continue to expand our business in California. It’s not about leaving California. “
Musk pointed out that he plans to expand the company’s Fremont, Calif., Plant where Tesla’s Model S, X, Y and 3 are built, in hopes of increasing production by 50%. .
The announcement drew cheers and applause from the general public at Tesla’s Austin manufacturing plant, where Musk delivered his remarks, which were webcast live.
While applauding Tesla’s announcement that it will increase production at Fremont, Bay Area business leaders lamented the head office move as the latest sign of the region’s lingering problems.
“Mr. Musk’s announcement once again underscores the urgency for California to address our housing affordability crisis and the many other challenges that make it so difficult for businesses to grow here,” Jim said. Wunderman, president and CEO of the Bay Area Council corporate advocacy group. .
Last year, tech giant Oracle Corp. decided to move its headquarters from Silicon Valley to Austin, saying the move would give its employees more flexibility in where and how they work. One of the founding companies in Silicon Valley, Hewlett Packard Enterprise, has also announced that it will be relocating to the Houston area.
At Thursday’s meeting, Musk also touted the company’s record vehicle deliveries this year, while noting that global supply chain disruptions that have resulted in a shortage of computer chips remain a challenge.
“It looks like we have a good chance of sustaining this in the future,” he said. “Basically, if we get the chips, we can do it. “
As a result, production of Tesla’s Angular Cybertruck pickup is not expected to begin until late 2022, Musk said, estimating that the company would reach “volume” production on the vehicle in 2023.
“We should get through our most serious shortages in the 23 supply chain,” he said. “I am optimistic that will be the case. “
Tesla said last week it delivered 241,300 electric vehicles in the third quarter even as it battles the computer chip shortage that has plagued the entire auto industry.
The company’s July through September sales topped Wall Street estimates of 227,000 worldwide sales, according to data provider FactSet.
Third-quarter sales were up 72% from 140,000 deliveries made by Tesla for the same period a year ago.
So far this year, Tesla has sold around 627,300 vehicles. This allows him to solidly beat last year’s total of 499,550.