Official: Tesla Ditching California HQ, Confirms Where Cyberquad ATV Will Be Built

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But Tesla still has big plans for California.

Elon Musk has confirmed that Tesla will move its headquarters from Palo Alto, California to Austin, Texas. The news may not come as a great surprise to anyone who has been following Musk's statements and activities over the past 18 months or so.

Last year, he expressed his frustration at California government officials for their response to the Covid-19 pandemic. The Tesla boss also moved from Los Angeles to Austin himself. Musk confirmed the change of HQ in a shareholder meeting that took place this week. While the company will continue to have a big presence in California, it has some exciting plans for Texas.

"To be clear, we will be continuing to expand our activities in California," said Musk according to CNBC. "Our intention is to increase output from Fremont and Giga Nevada by 50%. If you go to our Fremont factory, it's jammed."

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Gigafactory Terafactory Texas - YouTube
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It's hardly a surprise that the Fremont factory is jammed considering Tesla's latest sales figures, with the Model Y and Model 3 continuing to lead the way. As for the Austin plant, it won't reach full production capacity for a while even after it is completed. But according to Teslarati, Giga Texas will eventually produce the Cyberquad. This is an ATV that debuted at the same time as the long-awaited Cybertruck.

"We're definitely making the Cybertruck [at Giga Texas]," said Musk at the same shareholders meeting. "And so probably the ATV, too."

Back in 2019, Musk said that the aim is to have the ATV come out at the same time as the truck. Whether that materializes remains to be seen.

2022 Tesla Cybertruck Forward View Tesla
2022 Tesla Cybertruck Side View Driving Tesla
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Musk did, however, admit that ATVs are "pretty dangerous" and that the company will do whatever it can to make this one as safe as possible. "It will have a really low center of gravity because the battery pack will be down low," he said.

Perhaps Musk and his team have a better chance of the controversial ATV getting off the ground in Texas than in California. "You have to jump through far fewer hoops in Texas or Florida as an employer than you do in California in terms of reporting requirements and more," said business attorney Domenic Romano.

California will always be where it all began for Tesla, but the new base in Texas could cement the automaker's dominance in the EV space, even as older manufacturers continue electrifying their own lineups.

2021 Tesla Model S Plaid Front View Driving Tesla
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Source Credits: CNBC Teslarati

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