To the Parent Company City... Tesla Headquarters Moves to Texas
Impact of Tax Incentives... "California Factory Production Scale Will Continue to Increase"
[Asia Economy Reporter Byunghee Park] U.S. electric vehicle company Tesla Motors is relocating its headquarters from Silicon Valley, California to Austin, Texas.
Tesla CEO Elon Musk announced this headquarters relocation plan at a shareholders' meeting held in Austin, Texas on the 7th (local time), CNBC reported on the same day. However, Musk emphasized that regardless of the headquarters move, the electric vehicle production scale at the Fremont assembly plant in California will continue to increase.
CNBC stated, "Texas has actively attracted companies by offering tax incentives," adding, "Tesla has become one of the giant tech companies relocating its headquarters to Texas, following Oracle and Hewlett-Packard."
Musk himself moved his residence from Los Angeles (LA), California, where he lived for 20 years, to near Austin, Texas last year. Unlike California, which imposes high taxes on high-income earners, Texas has no personal income tax, which is expected to greatly benefit Musk, the world's richest person, in increasing his wealth. Financial information firm InsiderScore estimated that Musk could secure income exceeding $20 billion (approximately 23.89 trillion KRW) this year by exercising stock options.
Musk is continuing to expand his business in Texas. Tesla is constructing the Gigafactory, an electric vehicle production plant in Austin, and plans to develop the coastal town area of Texas, where the SpaceX rocket launch site is located, into a new space industry city.
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The shareholders' meeting was also held at the electric vehicle production plant under construction in Austin. Musk said it would take more time to establish a mass production system than to complete the plant. He noted that while the Shanghai plant took 11 months to complete, it took one year after completion to establish a mass production system, and he expects the Austin plant to follow the Shanghai plant's example.
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