California is still home for Tesla’s Engineering HQ

Elon Musk is not completely abandoning California, last Wednesday the founder Musk that Tesla Inc (TSLA.O) will make the state its global engineering home, even though the electric vehicle maker’s corporate headquarters are now in Texas.

The sudden rekindling of Tesla’s relationship with California may be surprise after the EV maker up and moved its corporate headquarters from Fremont, California to Austin, Texas in 2021 after disputes with the state over COVID-19 restrictions. Musk has also repeatedly criticized California for being over-regulated and burdened with high taxes.

Therefore, Tesla has balanced their current operations of its first factory in Fremont, which still houses for many engineers.

Tesla tweeted that it’s hiring for new engineering roles in California, which would be a large part of the reason Newsom is backing the EV-maker’s investment back into the state. Sources told CNBC that the focus will be on engineers proficient in research development and artificial intelligence.

The battery cell production of Tesla in the United States to take advantage of federal incentives in the Inflation Reduction Act.

Although Tesla is California’s most popular automaker, the company has a difficult relationship with the state. Tesla is being investigated by the federal equal employment agency and is still in the middle of a lawsuit from the state’s Civil Rights Department in regard to complaints from workers that the Fremont factory is rife with racial bias and harassment. The CA Department of Motor Vehicles has also accused Tesla of falsely advertising its Autopilot and Full Self-Driving (FSD) advanced driver assistance systems.

Tesla is expected to go further into details on the announcement on Wednesday during a scheduled livestream event.

Musk on Wednesday announced the news with the state’s governor, Gavin Newsom, and the Tesla CEO later told CNBC that putting the engineering hub in California means it is “effectively a headquarters of Tesla.”

Elon Musk is not entirely abandoning California, saying on Wednesday that Tesla Inc (TSLA.O) will make the state its global engineering home, even though the electric vehicle maker’s corporate headquarters are now in Texas.

Musk has recently on last Wednesday announced the news with the state’s governor, Gavin Newsom, and the Tesla CEO later told CNBC that putting the engineering hub in California means it is “effectively a headquarters of Tesla.”