Elon Musk is always in the news for some or the other reason, but this one is serious. He announced that Tesla will move its headquarters from California to Texas or Nevada due to California’s response to COVID-19.
The ongoing pandemic has left a big dent on all the businesses worldwide. However, they are slowly trying to get back on track by cautiously starting business activities again. Many automakers across the States are also resuming production activities this month, however, California plans to start from June 1. This led to Musk lashing out at the decision and shocked everyone with the announcement on Twitter. Was this response a little too harsh from the outspoken CEO?
Elon Never Wanted The Factory To Shut In The First Place
Musk has been vocal about starting the operations as soon as possible, so the frustration is understandable. Tesla tried to restart the Fremont factory following California governor’s comments to reopen the state, but Alameda County, where Tesla’s factory is located, turned this down and pushed it to June 1.
The fact that the other automakers will be resuming operations this month further added fuel to the fire. Musk then announced on Twitter that “Tesla is filing a lawsuit against Alameda County immediately. The unelected & ignorant 'Interim Health Officer' of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!”
It didn’t end there. He made the big announcement in the next tweet saying Tesla will move its headquarters to either Texas or Nevada immediately. Even the future of the factory depends on how the state government treats the EV company.
“Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependent on how Tesla is treated in the future. Tesla is the last carmaker left in CA,” the tweet read. Musk even asked the shareholders to file a class-action lawsuit against Alameda County.
Politicians Are Taking Different Stances Too
There was a lot of outrage surrounding this whole incident with people taking sides. Amidst all this, Treasury Secretary Steven Mnuchin and the Bay Area Council have voiced their opinions in favor of Musk.
Even Mayors of Fremont and Palo Alto sided with the CEO. Speaking with CNBC, Mnuchin said that "they need to solve those health issues so he can open quickly, safely or they’re gonna find he’s moving production to a different state."
Final Thoughts
Tesla has already listed three reasons for the lawsuit filed against Alameda County. It needs to be seen if Musk moves Tesla to Texas or Nevada, or if the automaker and the local government come to an agreement. Do you think it is wise for Tesla to shift its headquarters to another state? Share your thoughts with us in the comments section below.