Tesla is making California the home of its global engineering headquarters.
CEO Elon Musk and California Governor Gavin Newsom announced on wednesday that Tesla’s new engineering headquarters will be in the former Hewlett-Packard offices.
The sudden revival of Tesla’s relationship with California may be surprising after the electric vehicle maker moved its corporate headquarters from Fremont, California to Austin, Texas in 2021 following disputes with the state over COVID-19 restrictions. Musk has also repeatedly criticized California for being overregulated and saddled with high taxes.
However, Tesla has maintained operations of its first factory in Fremont, which is still home to many engineers.
tesla tweeted that it’s hiring for new engineering roles in California, which would be a big part of why Newsom is backing the EV maker’s investment in the state. Sources told CNBC that the focus will be on engineers competent in research development and artificial intelligence.
“California prides itself on being at the forefront of discoveries, new ideas and innovation,” Newsom said, noting the state’s longstanding relationship with Tesla. Newsom said he was excited to work with Tesla to transform the auto industry and bolster California’s manufacturing dominance.
Musk said the Fremont factory is expected to produce more than 600,000 vehicles this year.
Tesla also said Wednesday that it will focus battery cell production in the United States to take advantage of federal incentives in the Cut Inflation Act.
Although Tesla is California’s Most Popular Automaker, the company has a difficult relationship with the state. Tesla is under investigation by the federal equal employment agency and is still in the midst of a lawsuit from the state Department of Civil Rights regarding worker complaints that the Fremont factory is riddled with racial bias and harassment. . The CA Department of Motor Vehicles also accused Tesla of falsely advertising its Autopilot and Full Self-Driving (FSD) advanced driver assistance systems.
Tesla is expected to elaborate on the announcement on Wednesday during a scheduled live stream event.
