Tesla Makes California Its Engineering Hub


Tesla Motors | Image by Nadezda Murmakova

While Tesla calls Texas home, with its headquarters in Austin, the EV manufacturer said its engineering base will be in California.  

Elon Musk delivered the news alongside California Governor Gavin Newsom in front of Hewlett Packard’s former headquarters in Palo Alto, where Tesla’s new engineering department will be housed, according to Reuters. 

“This is a poetic transition from the company that founded Silicon Valley to Tesla, and we’re very excited to make this our global engineering headquarters in California,” said Musk in a press conference. 

“It’s a point of pride — always has been — that Tesla is a California company, started right here,” Newsom said during the announcement.

“It’s not surprising to me, but I don’t take it for granted,” Newsom added.

Musk said in the press conference that Tesla’s manufacturing plant in Fremont, California, is “the highest-output automotive plant in North America” and is expected to produce 600,000 cars in 2023. 

Tesla tweeted on Wednesday that it is the “largest manufacturing employer” in California, with 47,000 direct employees, and is investing $5 billion in capital investment in the Golden State.

Despite Newsom’s sentiment, the decision may have come as a surprise, as Musk has been a vocal detractor of California’s regulations and tax policy. 

Tesla threatened to move all of its operations out of California in 2020 due to the state’s shelter-in-place orders, according to The Verge.

The company also threatened a lawsuit against California due to its strict stay-at-home measures, The Verge reported.

Eventually, Tesla moved its headquarters to Austin in 2021, according to Business Insider.

Newsom’s office later released an official statement on the new announcement.

“The future happens in California first. We’re changing the world through our historic investments, our conveyor belt for talent, and partnerships with companies like Tesla,” Newsom said.

“The state continues to be the world’s innovation hub, charging the electric vehicle revolution, and dominating the industry in every category – all while keeping the same goal in mind: ensuring a cleaner, greener, and healthier place to live for future generations.”

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