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Tesla’s headquarters will move to Austin

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Re: Tesla’s headquarters will move to Austin

#12
post #5

> Our European visitors are important to us. alt: https://www.cnbc.com/2021/10/07/tesla-moves-its-headquarters...

Fta: 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.”

Re: Tesla’s headquarters will move to Austin

#13

I know this is charged but it's genuine question due to my ignorance - why are companies having or moving HQs to Texas? It feels that : 1. It's way out of temperate climate that one would live in when given full choice and all things equal (understanding they never are of course - I live in great white North :) 2. Politics are highly conservative and frequently invasive. now clearly half of Americans like it that way…

Business/profit friendly taxes and regulations.

Re: Tesla’s headquarters will move to Austin

#14
Warning: This post is written from a libertarian/center-right viewpoint.

While this move is great, I'm skeptical of the idea that moving to Austin is a political panacea for moderate/center-right/libertarian governance.

- The same percentage of people who voted for hard leftist candidates in SF also voted for hard leftist candidates in Austin. Don't believe me? Check it out for yourself: https://en.wikipedia.org/wiki/2020_Texas_Democratic_presiden... This means that, fundamentally, people in Austin believe the same things that people in California do.

- There are homeless issues in Austin, just as there are in SF (though not as bad as SF, it's getting worse every year).

- Many people don't realize how regulatory constrained Austin is for new buildings/housing. The same NIMBYism exists in Austin too, just like SF! But this isn't surprising since people in Austin basically have the same politics as people in SF. The only reason why rents are cheaper (though that's changing as more people move in), is because Austin isn't as big as SF. If all of the intelligent tech people moved to Austin, it would have the same supply & demand problems that SF has (since you'd have the same number of people mixed with the same regulatory constraints on new housing supply).

- Yes, it's true Austin is a place with zero income tax and fewer business regulations, but that's only because it's held at bay by the surrounding red regions of Texas. But it's only a matter of time before Texas turns blue. So in the long-run -- when the state house will be controlled by the same party running California -- why would you expect tax rates and regulations to stay low? In 10 years, Texas will have the same political makeup (at the city, state, and federal levels) as California!

- The bulk of taxes and regulations aren't at the state/city levels. They're at the Federal level. A zero percent state income tax is cool, but it only goes so far. Is the entire tech ecosystem really going to sustain this movement for a mere 10% drop in total taxes? The SF/NYC network effects are still very strong. I'm not sure such a marginal/incremental decrease in taxes is enough to affect this sort of change.

Power to Tesla though. I really, really hope to be proven wrong.

Re: Tesla’s headquarters will move to Austin

#15
post #2

Yet, Tesla will still have to ship Texas cars out of state to sell to Texans.

Symbolic move with some logistic practicality with Boca Chica and his 400 sq ft tiny house [1] being home base at Starbase. All signs point to Tesla continuing manufacturing at Fremont and they just opened a Megapack manufacturing facility in Lathrop, CA (hiring 1k-2k workers) [2]. The irony that "pro business, less regulation" Texas doesn't allow direct to consumer sales of Teslas.

[1] https://www.architecturaldigest.com/story/elon-musk-lives-pr...

[2] https://www.teslarati.com/tesla-megapack-lathrop-megafactory...

Re: Tesla’s headquarters will move to Austin

#16

I know this is charged but it's genuine question due to my ignorance - why are companies having or moving HQs to Texas? It feels that : 1. It's way out of temperate climate that one would live in when given full choice and all things equal (understanding they never are of course - I live in great white North :) 2. Politics are highly conservative and frequently invasive. now clearly half of Americans like it that way…

Lower taxes and fewer regulations

Re: Tesla’s headquarters will move to Austin

#17

How does this save or make Elon Musk money, personally? Because that seems to be the question that underlies almost every major move Tesla has made since Elon took over.

You know Elon has run Tesla from like... practically the ground floor right? He bought a controlling share like 8 months into the company history and has been CEO since 2008.

Given that half of Elon's wealth is Tesla stock, what makes Elon money is pretty much inseparable from what makes the company money. Weird thing to complain about.

Re: Tesla’s headquarters will move to Austin

#18

I know this is charged but it's genuine question due to my ignorance - why are companies having or moving HQs to Texas? It feels that : 1. It's way out of temperate climate that one would live in when given full choice and all things equal (understanding they never are of course - I live in great white North :) 2. Politics are highly conservative and frequently invasive. now clearly half of Americans like it that way…

i'm sure there are many reasons but it is far, far more expensive to operate in california than texas on any level, from personal to enterprise. texas also has cheap land, a sizable tech sector, and weaker labor regulations (all 3 tying back into the first thing).

Re: Tesla’s headquarters will move to Austin

#19

I know this is charged but it's genuine question due to my ignorance - why are companies having or moving HQs to Texas? It feels that : 1. It's way out of temperate climate that one would live in when given full choice and all things equal (understanding they never are of course - I live in great white North :) 2. Politics are highly conservative and frequently invasive. now clearly half of Americans like it that way…

> largely progressive company like Tesla

Did you miss the memo? Progressives hate Tesla now.

Re: Tesla’s headquarters will move to Austin

#20

I know this is charged but it's genuine question due to my ignorance - why are companies having or moving HQs to Texas? It feels that : 1. It's way out of temperate climate that one would live in when given full choice and all things equal (understanding they never are of course - I live in great white North :) 2. Politics are highly conservative and frequently invasive. now clearly half of Americans like it that way…

I dont think they really are. But if you want a big office building with 5000 middle class workers SV is very expensive to do this.
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