Musk’s Plans of Moving to Texas and His Reasons Behind Silicon Valley Departure
On Tuesday, Tesla’s CEO Elon Musk told The Wall Street Journal that he moved to Texas and left Silicon Valley in an interview. Musk admitted that California often neglects its innovators.
In the earlier months of the COVID-19 pandemic, thousands of San Francisco Bay Area residents left the city for good and relocated to other places. The young CEO of Tesla has also decided to make the same choice and move to Texas. Several critics predicted that Musk must have transferred to Texas due to its absence of income tax. Official data reports revealed that Tesla holds billions of money for Musk’s 18% investment.
The Wall Street Journal newspaper did not indicate where Musk transferred in Texas, but many speculated that he moved somewhere near Austin. The prediction is due to the close location of Musk’s other company SpaceX. Additionally, Tesla currently supervises the construction of a new factory near the city. Musk told the newspaper that he has planned his move for several months.
Earlier this year, Musk had threatened to move Tesla’s Palo Alto in Texas. The decision resulted from Tesla CEO’s disagreement with county officials debating over whether or not Tesla’s factory in Fremont should resume operations despite pandemic protocols. Palo Alto is Tesla’s primary headquarters.
In the newspaper article of his interview with WSJ, Musk described California’s current business approaches to an overconfident sports team’s methods.
Musk explained that California had won multiple times in its business dealings with innovators. Due to the continuous victories, the state becomes a little entitled and complacent. As a result, the nation often takes its business pioneers for granted.
Musk is not the only businessman to share that sentiment. In the past week, Hewlett Packard Enterprise has decided to relocate its company headquarters to Houston from San Jose.
Hewlett Packard Enterprises’ Future Relocation to Houston
The Texas Gov. Greg Abbott’s office stated that by early 2022, the business computing firm would move to the outskirts of Spring and open its new headquarters.
Gov. Abbott expressed his excitement about HPE’s plan to relocate to Texas. He also thanked the company for moving its headquarters to the Houston area and expanding its investments in the Lone Star State. The governor also said that in Houston alone, there were about 22 Fortune 500 companies. HPE would join more than 50 of those companies in Texas.
According to HPE CEO Antonio Neri, he said that Houston is a perfect place to recruit and employ future diverse talents to add to the company. Despite the move, Neri clarified that he would not forget the Bay Area, HPE’s historical birthplace.
In an emailed statement, Neri expressed his firm decision to maintain HPE’s robust presence at Silicon Valley, including Araba’s headquarters located at the company’s San Jose campus in 2019. Furthermore, Neri confirmed that the move would not result in any employee lay-offs and would focus on expanding the company’s market.
Tesla’s Current Stock Sales and Upcoming Contributions in the Vehicle Market
Tesla Inc. said in a regulatory filing that on its stock offering, the company would check and make the sales occasionally. Each stock would obtain up to 0.25% commission and would sell through 10 different brokerage houses.
Wedbush’s Daniel Ives commented on Tesla’s current relocation plans through a client note. Ives agreed that the move makes sense as the company attempts to maintain its interests in the electric vehicle trade.
On Tuesday, Tesla closed its stock sales at $649.88, noting the company’s highest increase of more than 600% this year.
Tesla has to spend billions of dollars this year as it plans to expand its operations outside Austin and build a new factory in Germany. Sometime next year, the company would also introduce its new “Cybertruck” pickup and semi vehicles to the public.