Elon Musk Selects California as Tesla's Global Engineering HQGov. Gavin Newsom joined the company's CEO in making the announcement, though Musk has criticized California before.

BySteve Huff

NurPhoto | Getty Images

Tesla公司是在其在Californi上下大工夫a by establishing its global engineering headquarters in Palo Alto. The move comes after CEOElon Muskmoved the company's headquarters from Silicon Valley to Texas in 2021, citing limited scalability in the Bay Area.

Despite the move, over a third of Tesla's global workforce is inCalifornia, with many working in Fremont, the location of the company's first car plant. Musk affirming Tesla would continue to invest in California was a big change from his previous comments. As theWall Street Journalpointed out, Musk, in the past, compared the Golden State to a winning sports team, coasting on its reputation for success. The state tends "to get a little complacent," Musk said, "a little entitled, and then they don't win the championship anymore."

Wednesday evening with Gov. Gavin Newsom in attendance, Musk was more optimistic, pledging at the Palo Alto event that Tesla will "build the future here."

Tesla hasn't been immune to layoffs striking other Californiatechgiants. It laid off over 200 people in 2022 by closing its San Mateo office location, home to staffers working on Tesla's advanced driver-assistance system, Autopilot.

这个十年结束的时候,特斯拉计划销售2000万vehicles annually. In addition, the company recently revealed potential expansions at its Austin, TX-area plant worth $775 million.

In Palo Alto, Musk expressed optimism, saying Tesla would "build the future here." Despite his earlier criticism, he recognized California's importance to the company, stating that Tesla still employs around 48,000 Californians and that the state will remain an integral part of the company's growth.

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Steve Huff

Entrepreneur Staff

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