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Tesla will move its headquarters to Musk, Texas, or save billions of dollars in taxes

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Tesla CEO Elon Musk said Thursday that the electric car manufacturer plans to move its headquarters from Palo Alto, California’s Silicon Valley to Austin, Texas, where Tesla is building a large A comprehensive base for automobile and battery manufacturing. With the completion of the new factory, Musk is also ready to “move”, which may save him billions of dollars in taxes.

In December of last year, because of dissatisfaction with the California government’s order to suspend business of Tesla during the epidemic lockdown, Musk took the county government to court and threatened to leave California. Musk subsequently said that he had sold all the real estate in California. He recently said that he had moved to Texas and temporarily separated from his girlfriend.

“I am happy to announce that Tesla will move its headquarters to Austin, Texas.” Musk said at the company’s annual meeting held at the Texas car factory. “But this does not mean that Tesla will leave California.” Musk said that Tesla still plans to increase the production of its main factory in California and Nevada by 50%.

Texas is known for its zero taxes and relatively low cost of living, as well as a friendly business environment and lenient policies. It has attracted the headquarters of American companies including Oracle, Hewlett-Packard and Toyota.

An executive of a company with a manufacturing plant in Texas told a reporter from China Business News: “Texas in Texas is relatively cheap and close to zero. This is recognized as the most attractive place and is also very good for attracting talents. It’s cheaper. Many Fortune 500 companies have their headquarters in Texas.”

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California’s income tax rate is 13.3%, and Texas is zero. This means that leaving California and moving to Texas will save Musk billions in taxes. As of Thursday’s close, Tesla’s stock price is approaching a high of $800 again, and its market value has exceeded $750 billion.

Musk’s own income has also risen with the soaring market value of Tesla, although he has not received any salary for a long time. According to an executive compensation plan awarded to Musk by the Tesla board of directors this year, Musk’s compensation will increase in accordance with the growth of Tesla’s market value and other financial indicators, and will win him a huge stock award.

According to data from the research organization InsiderScore, if Musk sells Tesla stock options that expire in 2021, he can earn more than $20 billion this year.

Tesla announced the delivery data for the third quarter of 2021 last week. In the third quarter, approximately 238,000 electric vehicles were produced worldwide and more than 240,000 electric vehicles were delivered, an increase of 73% year-on-year and a new high. The analysis predicts that in the first three quarters of this year, Tesla’s China Super Factory produced about 300,000 electric vehicles.

Tesla occupies about 2,000 acres in the Texas super factory, 15 minutes away from the city. It is planned to be used for the construction of electric pickups Cybertruck, electric truck Semi, Model 3 and Model Y (configuration|inquiry).

Musk said that after the completion of the Texas plant, it will take some time to reach full production. He expects the new factory will follow the example of the Shanghai Super Factory. Tesla’s super factory in Shanghai took only 11 months to build, and then it took a year to reach full mass production.

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In addition to Tesla’s new factory in Texas, Musk also owns the rocket company SpaceX’s launch site in Boca Chica in southern Texas, where Musk often releases SpaceX “Starship Production” According to Musk’s trajectory published on Twitter, most of his time in the past year has been spent between the coastal villages of Austin and Boca Chica. Musk’s tunnel startup Boring Company also has operations in Texas.

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