Another major company is moving its headquarters out of California, as Tesla is moving its headquarters to Texas.
California has been losing companies at a record pace. Oracle, HPE and a slew of smaller companies have been leaving, or moving their headquarters out of the state. In fact, 2021 is set to double the rate of defections over 2020.
Tesla is now poised to follow suit, with CEO Elon Musk announcing the company would move headquarters to Texas at its shareholder meeting.
“I’m excited to announce we are moving our headquarters to Austin, Texas,” Musk said, according to The Washington Post. “Just to be clear, though, we will be continuing to expand our activities in California. This is not a matter of Tesla leaving California.”
Cost of housing was a major factor for the move.
“It’s tough for people to afford houses and a lot of people have to come in from far away,” Musk said. “There’s a limit to how big you can scale in the Bay Area.”