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Tesla's decision to relocate its corporate headquarters from california to texas. The authors explain the reasons behind this move, including lower taxes, fewer covid-19 restrictions, and more affordable housing. They also explore the positive and negative consequences of this relocation, such as the impact on social policies and the costs involved. Intended to be used as a study or summary resource for university students or lifelong learners.
Tipo: Guías, Proyectos, Investigaciones
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Practice 7 Belén Antón (100473209), Diego San Segundo (100473834), Sergio Fernández (100473369), Jaime Juan (100476124)
Company : Tesla Source :As Elon Musk Goes to Texas, Will Tech Workers Follow? - Bloomberg Decision: Elon Musk announced this month that he will move Tesla’s corporate headquarters to Austin
Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors, they wanted to prove that people didn't realize how comfortable and ethical it could be to drive electric vehicles, and that electric vehicles could be faster and better than gasoline vehicles. Nowadays, Tesla does not only make fully electric vehicles, it also supplies clean energy generation and a different variation of products like clothes for men and women. The company is now directed by its CEO’s Elon Musk and JB Strabuel; the ones are wanting to relocate its campus to Los Angeles due to differences that will be announced. Actually the company counts with a 15,2% of market share of worldwide sales of electric cars and plug-in hybrids and with a yearly income of $31.54 billion, being one of the top enterprises in the stock market. Furthermore, this essay will be developed in the following order, firstly it will open a discussion where the reasons for this relocation will take a big part of the statement, afterwards, some positive and negative consequences about this new location strategy will be determined and finally, a brief conclusion will close the essay. Probably the main reason to move from California to Texas responds to the will of having a bigger expansion in the company. In California, Tesla was not having easinesses to develop its production. But this difficulty that was hindering the firm from developing its production has different causes or reasons. The taxes are very high and in Texas they are lower which is something that enterprises worth a lot, COVID-19 restrictions are much less tough which was the straw that broke the camel’s back in Elon Musk. The strict regulatory environments did not help either, schools, restaurants, cafés, industries or airports were totally closed which Tesla did not benefit at all. The housing cost also was important to change because not only was it expensive but it was too far from the work venues. Texas makes it easier with affordable housing and is very close to the company. It is said too that in California the number of crimes is increasing, making it a dangerous place to live. Summarizing, the mix of the critical factors that affect both the company’s aim to grow and the employee’s life ended up with a change in location looking for a place where maximizing their production with not so many obstacles and more facilities.