Seems Tesla is not simply constructing a manufacturing unit in Austin, Texas — it is also transferring its headquarters to town from California. Elon Musk has announced the transfer on the firm’s most up-to-date annual shareholder assembly, the place he additionally clarified that Tesla nonetheless plans to broaden manufacturing at its California plant by 50 %. He defined, nevertheless, that there is “a restrict to how huge you’ll be able to scale within the Bay Space,” as a result of home costs are sky excessive, which implies lengthy commutes for employees who must stay elsewhere.
The transfer would not come solely as a shock: Musk beforehand threatened to maneuver Tesla’s headquarters out of California after coronavirus lockdowns pressured 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 value noting that Tesla is now primarily based in a state the place it can’t sell its vehicles to patrons instantly, which has been its method from the start, attributable to pro-dealership legal guidelines.
As CNBC notes, Musk transferring to Texas means he’d be paying much less taxes. The state has no private revenue tax, whereas California has a number of the largest revenue tax charges within the nation. Additional, the state has been providing firms tax breaks to construct services within the state beneath the Texas Financial Growth Act.
Throughout the assembly, shareholders additionally voted on proposals to enhance firm governance. The New York Times stated they agreed on a lot of the proposals other than a pair that the corporate opposed, one in all which might require the corporate to publish stories on its efforts to diversify its office. Tesla stated in a report (PDF) final yr that its management within the US remains to be largely white and male, whereas its workforce is 79 % male and 34 % white total. 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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