Elon Musk just announced that the Tesla headquarters would be moving to Austin, Texas.
Prior to this, the Tesla was located in Palo Alto, California, which is near the company's original headquarters in San Carlos and its first factory in Freemont.
Musk first announced his plans to move Tesla headquarters to either Texas or Nevada last year.
The owner's announcement came after he got into a dispute with officials from Alameda County, California, over the safety of Tesla's factory in Fremont during the COVID-19 pandemic.
Elon Musk explains decision to move Tesla headquarters to Texas
On Thursday, Musk shared the news during a Tesla shareholders meeting. He also explained why it is more sensible to move the headquarters to Texas.
The SpaceX founder said that there is a limit to how big the company can scale in the Bay Area, according to CNN.
Houses in Texas are also much cheaper compared to California. And the long commutes between San Carlos and the airport are no longer feasible.
Whereas in Austin, the factory and the airport are just five minutes away from each other. And the new headquarters is just 15 minutes away from downtown.
The median price for properties in Palo Alto is $3.3 million. The median price for homes in Austin is just over half a million.
However, the move doesn't mean that Tesla will no longer operate in California. Musk said that the company would continue to expand in the state.
Texas officials excited to have Tesla in the community
Austin Mayor Steve Adler released a statement expressing his excitement to have the Tesla headquarters in Texas following the announcement.
"We welcome Tesla home! It's a tech company that creates the clean manufacturing, middle-skill jobs Austin needs. We're one of the safest big cities, with a strong innovative, entrepreneurial, environmentally focused culture and Tesla fits right in. Tesla is now an even larger part of a community that works together to meet our challenges and to enjoy a magical city," Adler said via KXAN.
Texas Gov. Gregg Abbott also welcomed Musk and Tesla to Texas.
Laura Huffman, the president and CEO of the Greater Austin Chamber of Commerce, called the move a home run for the state.
After all, the arrival of Tesla in Texas means 10,000 job opportunities will become available for the residents of Austin. And these jobs will be available for those who just graduated from high school, as well as those that finished two-year and four-year courses.
Elon Musk believes government shouldn't meddle with business
Musk has not responded to the positive comments that government officials made after his announcement that Tesla headquarters will move to Texas.
But last year, the Tesla CEO said that the government and business do not mix. He urged the government to stay in their field, according to CNBC.
At the time, Musk proudly said that Tesla and SpaceX were the only two companies still manufacturing in California after other car and aerospace companies left the state.
Musk also confirmed that he had already relocated to Texas last year even though his companies continued to operate in California.