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Tesla’s headquarters will move to Austin

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Re: Tesla’s headquarters will move to Austin

#391

Post by icapulet2 »

joewadcan wrote: post #53
barney54 wrote: post #29

Now that Elon has extracted a bunch of subsidies from California, he is moving on.

Which ones specifically? The only two I know of are: - The low/zero emission car rebate that Toyota and every other manufacturer has used. - The clean energy manufacturing tax write off that applies to over a hundred other companies. I don't think California has given Elon any significant subsidies. When Tesla asked states to compete on the Gigafactory, California lost to Nevada.

lol are you serious? Google "tesla ZEV credits". and CAEATFA has landed it over $225MM worth in write offs.

Re: Tesla’s headquarters will move to Austin

#392

Post by Omniusaspirer »

muzz wrote: post #335
larsiusprime wrote: post #270

Earlier quoted context omitted.

This is a huge reason that property values are cheaper in Texas. Either you pay high property tax rates on (relatively) cheaper property or you pay exorbitant rent to your landlord that just keeps escalating. There is very good evidence that property taxes are capitalized into property values. Land taxes in specific are fully capitalized (which is to say, they lower the price of the land, and the landlord can't pass…

A decade ago, I owned a 200k house in Austin while making a 6-figure salary in California-- I paid more in property taxes on the house in Austin than I did on income taxes on my income in California.

This is really only the case if you had substantial deductions of some sort.

Assuming you made exactly 100k as a nice lowball you'd have owed $6947.92 in 2011 California income taxes. Harder to quickly find 2011 Austin property taxes but using todays rates without the homestead exemption you would have paid $4653 presuming you lived in Austin proper with Austin ISD taxes.

This is obvious a simplified calculation assuming basic W2 income and may very well not have applied to you, but for others reading it's nice to see some actual numbers.

Re: Tesla’s headquarters will move to Austin

#393

Post by AlbertCory »

thebradbain wrote: post #327
boringg wrote: post #296

Earlier quoted context omitted.

I feel for everyone as the prices are getting stupid everywhere.... BUTTTT I just looked on Redfin - I could buy a 3300 square foot house in Austin for under $900k with a huge pool and that was a 5 second search. No offense all you Austin folk, but you literally have no clue.

Taxes for that home in TX would be equivalent to a $1.8M+ home in CA, though (and raise every year with the market), so it's not as simple as comparison. The monthly mortgage payment for a $900k in Austin is probably comparable to a $1.2-1.3M home in CA.

Indeed, I've also checked it out.

No income tax, but property taxes are at least 2% of the assessed value, and sometimes 3. You'll see that on the Zillow listing.

Re: Tesla’s headquarters will move to Austin

#394

Post by gautamcgoel »

newhotelowner wrote: post #61
danhak wrote: post #34

California's tax regime is really backward. I suspect Tesla's departure is just the tip of the iceberg and that the repeal of the SALT deduction in 2017 really hastened this trend. High earners pay an effective tax rate of > 50%. They are partially picking up the slack from Prop 13, which artificially distorts the housing market by allowing longtime homeowners to pay property taxes based on decades-old assessed value…

> The exodus will only pick up steam unless policymakers get their act together. I used to live in California. There is no better state than California. If house price falls, I would buy another house in California.

Just out of curiosity, why do you like it so much?

Re: Tesla’s headquarters will move to Austin

#395

Post by muzz »

cjensen wrote: post #76

When CEOs move, they often move their headquarters closer to where they live. Somehow Tesla managed to survive all the problems of California until shortly after Musk moved to Texas. Folks talking about the advantages and disadvantages of California vs Texas may be overthinking this.

Elon personally potentially saving billions in taxes might have a lot to do with both of those ie his move and then the company's move. As an investor in the company, I am concerned about that (that this change was done to benefit one person rather than the company).

https://www.houstonchronicle.com/business/article/Elon-Musk-...

Re: Tesla’s headquarters will move to Austin

#396

Post by C19is20 »

etchalon wrote: post #141
Apocryphon wrote: post #56

The official reason is because of housing: "To be clear we will be continuing to expand our activities in California," Musk said. "Our intention is to increase output from Fremont and Giga Nevada by 50%. If you go to our Fremont factory it's jammed." But, he added, "It's tough for people to afford houses, and people have to come in from far away....There's a limit to how big you can scale in the Bay Area." https://ww…

As someone who just bought a house in Austin this year, if the reason is "affordable housing", they're in for a world of hurt.

As a europerson: what are the crime statistics per place? Is there a heyjackass.com equivalent for the two 'areas'?

Re: Tesla’s headquarters will move to Austin

#397

Post by dmode »

I am curious if there are any Tesla Palo Alto employees here. Wondering if this is also paired with moving their eng team ? Otherwise, feels like a symbolic move by Elon almost as a response to the factory shutdown last year. He also said that they are expanding Fremont production and they recently announced a new factory in Lathrop. Weird move, but whatever

Re: Tesla’s headquarters will move to Austin

#398

Post by myself248 »

I mean, if they want cheaper housing and plenty of space for factories, they could always look at Michigan.

But then they'd have to make cars that understand ice and snow, and autopilot is much easier to sell if they can pretend freezing weather doesn't exist....

Re: Tesla’s headquarters will move to Austin

#399

Post by api »

oceanplexian wrote: post #383
pvarangot wrote: post #158

Earlier quoted context omitted.

I talked to several Tesla and former Tesla folks that will probably relocate because of this, and the say is that since Austin in less NIMBY than the Bay Area new housing will get built and prices will go down. It's a more complex bet than just "we move there because houses are affordable now".

It’s a no brainer, my company offered to let me move out of CA a few years ago. My utilities are 50% cheaper and more reliable, crime is lower, the air quality is better, and I bought a new construction with 10G Fiber Internet (You will never get this in California due to failing infrastructure). I miss is the arts, culture, and nightlife, but that was wiped out by government-enacted COVID restrictions so there are f…

NIMBY housing cartels aren’t political idealism, and they are the main reason people are leaving.

Also I’m not sure the utilities are better in Texas. Cheaper, sure, but is that gas infrastructure winterized yet?

Re: Tesla’s headquarters will move to Austin

#400

Post by Pxtl »

scoofy wrote: post #265
seabrookmx wrote: post #256

Earlier quoted context omitted.

Not even just the bay area but the whole coast. Look at prices in Portland, Seattle, Vancouver, or out east. They all easily top Austin. I think it's a good thing. Austin has a budding tech scene. Hopefully the political shitstorm there blows over so people actually want to live there.

>budding Literally Dell Computers is from Austin.

Also National Instruments
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