Seems Tesla is not simply constructing a manufacturing unit in Austin, Texas — it is also shifting its headquarters to town from California. Elon Musk has introduced the transfer on the firm’s most up-to-date annual shareholder assembly, the place he additionally clarified that Tesla nonetheless plans to increase manufacturing at its California plant by 50 p.c. He defined, nevertheless, that there is “a restrict to how large you possibly can scale within the Bay Space,” as a result of home costs are sky excessive, which implies lengthy commutes for employees who should reside elsewhere.
The transfer would not come fully as a shock: Musk beforehand threatened to maneuver Tesla’s headquarters out of California after coronavirus lockdowns compelled the corporate to droop manufacturing within the state. He even referred to as the lockdown orders “fascist” throughout an earnings name in 2020 after which personally relocated from LA to Austin a number of months later. That stated, it is price noting that Tesla is now primarily based in a state the place it cannot promote its vehicles to consumers immediately, which has been its strategy from the start, resulting from pro-dealership legal guidelines.
As CNBC notes, Musk shifting to Texas means he’d be paying much less taxes. The state has no private earnings tax, whereas California has among the largest earnings tax charges within the nation. Additional, the state has been providing corporations tax breaks to construct amenities within the state beneath the Texas Financial Growth Act.
Throughout the assembly, shareholders additionally voted on proposals to enhance firm governance. The New York Occasions stated they agreed on many of the proposals except for a pair that the corporate opposed, one among which might require the corporate to publish studies on its efforts to diversify its office. Tesla stated in a report (PDF) final 12 months that its management within the US remains to be largely white and male, whereas its workforce is 79 p.c male and 34 p.c white general. Only a few days in the past, the corporate was ordered to pay $137 million in damages to a former Black employee. The plaintiff accused the automaker of turning a blind eye to discrimination and racial abuse whereas he was working at its plant in Fremont, California.
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