The electric car and ecosystem company Tesla, founded by Elon Musk, is moving from Palo Alto, California, or more commonly known as Silicon Valley, where it has been managed since its establishment. Its new headquarters will be in Austin, Texas, where a car and battery factory is being built. High taxes and expensive living standards in California are behind the decision, according to Reuters.

Although the state of California, where Silicon Valley is located, is seen as a place where new ideas sprout by the whole world, tax policies are quite strict. For this reason, Oracle, HP, and Toyota Motor companies, which were previously owned by Facebook, also moved their headquarters to Texas. Texas has become an attractive center for companies due to its lower tax rates.

The high tax policy is pushing the company, and the expensive living standards are pushing the factory workers:

Tesla’s factory in California, where its former Headquarters is located

According to the US press, the income of the workers at the Tesla factory in California has reached a level that is not even enough to buy a house to live in the region. The reason for this is that California has become the center of rich companies and high-level employees, and the state government acts by determining appropriate policies for this cut.

According to Elon Musk, who voiced the decision at the first shareholder meeting of this year, “moving the company’s headquarters does not mean that they have left California completely.” It is aimed to increase the capacity of Tesla factories in California and Nevada by 50% by moving the headquarters to a cheaper state.

SpaceX’s new rockets and Elon Musk’s home are located in the same place, Texas:

The launch site, where Elon Musk’s other company SpaceX, which has been focusing on its main project Starship for a long time, tests its rockets is located in the south of Texas. There is also a long-running automobile factory in Freemont, Texas, where Tesla’s new headquarters will be located. The house where Elon Musk has lived for a while is also very close to both areas.

Elon Musk threatened to relocate the California government a long time ago:

At the time of the Covid-19 epidemic, Tesla’s factory in California was closed due to the measures taken and production was disrupted. Upon this decision, Musk threatened to move to Texas by confronting the state government, whereupon member of parliament Loreno Gonzalez tweeted “F*ck Elon Musk”.

It is said that Musk attended the meeting where he made the decision to move, wearing a cowboy style waist belt with “Don’t mess with T” written on it. This phrase is also the name and slogan of the “Don’t mess with Texas” campaign used for environmental awareness in the state of Texas.