Why Tesla’s Getting a New Headquarters

At the company's latest shareholder meeting, Elon Musk announced Tesla (TSLA) will be moving his headquarters from Palo Alto, California to Austin, Texas.

The meeting took place outside of Austin, at Tesla's vehicle assembly factory, which is now under development on land that borders the Colorado River.

Regardless of the headquarters relocation, the company intends to grow output at its California operation…

Musk said the company will continue to expand its activities in California. But Fremont is currently “jammed up,” so he's looking to spread some of that capacity to Austin and the Gigafactory in Nevada.

It's tough for people to afford houses and travel long distances to work in the Bay Area, which makes scaling in Fremont much harder than Austin.

The taxes are also much more favorable for corporations and individuals in Texas compared to California…

California has some of the highest personal income taxes in the country, whereas Texas has 0% personal income tax.

So, I think this move makes sense for a number of reasons.

And it's certainly bullish for TSLA stock.

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The Best TaaS Stock Right Now

This company is set to corner the market in a self-driving technology that  could fundamentally change our entire society – much like the internet did.

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