FILE PHOTO: A line of Tesla Model S sedans is seen outside its headquarters in Palo Alto, California, on April 30, 2015. Reuters / Elijah Nouvelles
8 October 2021
By Hyunju Jin and Subrata Patnaik
SAN FRANCISCO (Reuters) – Tesla CEO Elon Musk on Thursday plans to move its headquarters from Palo Alto, Silicon Valley, California, to Austin, Texas, to build a larger car and battery manufacturing facility. he said.
Tesla has joined Oracle, HP and Toyota and moved its US headquarters from California to Texas. California is an area with relatively high taxes and living expenses. Silicon Valley is also a hive for innovative ideas and corporate growth, but Texas is known for its cheap labor and less regulated regulations.
“We are pleased to announce that we will be relocating our headquarters to Austin, Texas,” Musk said at the company’s annual meeting at an automotive plant in Texas.
“That doesn’t mean Tesla will leave California,” he said, adding that he plans to increase production by 50% from its main and Nevada plants in California.
Nonetheless, he said the factory in Fremont, Calif., was “full” and could not afford to buy a home in California.
Billionaire Musk himself moved from California to Lone Star in December, focusing on his SpaceX rocket company with a new plant for an electric vehicle maker in the state and a launch site at the southern tip of Texas.
Musk had an occasionally volatile relationship with California, threatening to move Tesla’s headquarters and future programs to Texas, for example over the closure of Tesla’s factory in Fremont, Calif., by COVID-19.
At the meeting, he showed off a cowboy-style belt buckle-like design adorned with “Don’t Mess with a Tee” (Tesla logo style tee). The phrase is based on the venerable and popular Texas litter prevention campaign – Don’t Ruin Texas.
director term cut
Despite criticism from active shareholders and deputy advisory services, shareholders followed the board’s guidance on a number of important proposals, including the re-election of Elon’s brothers Kimball Mask and James Murdoch.
However, they voted in favor of a shareholder proposal to reduce the term of directors’ office from three years to one year, and to propose additional reporting on diversity and inclusion efforts.
“It’s a shame that shareholders didn’t agree to dismiss Murdoch and Musk’s brothers, but I think they know they’re under pressure,” said Stephen of Santa Clara University School of Law. Professor Diamond said.
“They have a lot to do with governance. Simply changing the terminology is the result of a bigger governance issue,” said Columbia Business School professor William Klepper.
Advisory Farm’s Institutional Shareholder Service (ISS) has recommended that Tesla investors not re-elect the two directors due to concerns about an exorbitant compensation package for non-executive directors.
Shareholders also voted against shareholder proposals seeking an investigation into the impact of Tesla’s use of arbitration on workplace harassment and discrimination.
The proposal, which was opposed by the board, came to the fore on Monday after a former black contract worker received a $137 million jury award against Tesla for racism in the workplace.
(Reporting by Hyunju Jin, Subrata Patnaik, Bhanvi Satija, Edited by Peter Henderson and Stephen Coates)