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Musk’s Texas Move Surprised Even Staff, California Official Says

Musk’s Texas Move Surprised Even Staff, California Official Says

Elon Musk’s announcement of Tesla Inc.’s headquarters move from Silicon Valley to Texas was a surprise to California officials -- and to the automaker’s own local leadership, according to the head of the state’s office of business and economic development.

“Elon didn’t even tell his team,” California’s Dee Dee Myers said during a press call when asked if the state had been informed in advance of Musk’s plans. “We later talked to the leadership in his offices in California, who did not know until he made that announcement.”

Myers noted Tesla’s “enormous investment” in California, where the electric car-maker was founded. Indeed, during the same shareholder meeting, Musk, who had personally moved to Texas last year, said that the company hopes to increase output at its Fremont facility in the Bay Area by 50%.

“I don’t think anybody knows exactly what it means that he’s moving his headquarters,” Myers said. “From the perspective of California, they’re not going anywhere.”

Tesla has yet to move to Austin from its Palo Alto base. The company didn’t respond to a request for comment.

©2021 Bloomberg L.P.