Tesla is making California its global engineering headquarters.
CEO Elon Musk and California Governor Gavin Newsom announced Wednesday that Tesla’s new engineering headquarters will be located in the former Hewlett-Packard office.
Tesla’s sudden rekindling relationship with California may come as a surprise after the EV maker’s founding and move company headquarters from Fremont, California to Austin, Texas in 2021 after a dispute with the state over COVID-19 restrictions. Musk has also repeatedly criticized California for being too regulated and has a high tax burden.
However, Tesla still maintains the operation of its first factory in Fremont, which still has many engineers.
Tesla tweeted that it is hiring for new engineering roles in California, which will be a big part of the reason Newsom is backing the EV maker’s investment back into the state. source told CNBC that the focus will be on engineers well versed in research development and artificial intelligence.
“California is proud to be at the forefront and excels in discovery and new ideas and innovation,” said Newsom, noting the state’s longstanding relationship with Tesla. Newsom said he’s excited to partner with Tesla to both transform the auto industry and solidify California’s manufacturing dominance.
Musk said the Fremont plant is expected to produce more than 600,000 vehicles this year.
Tesla also said Wednesday that it will focus battery production in the United States to take advantage of federal incentives in the Inflation Reduction Act.
Although Tesla is California’s Most Famous Car Manufacturer, the company has a difficult relationship with the state. Tesla is being investigated by federal equal employment agency and still in the middle of a lawsuit from the state Civil Rights Bureau regarding workers’ complaints that the Fremont factory was rife with racism and harassment. The CA Department of Motor Vehicles also accused Tesla false advertising Advanced driver assistance systems Autopilot and Full Self-Driving (FSD).
Tesla is expected to go into more detail on Wednesday’s announcement during a meeting. Scheduled live streaming event.