Tesla CEO Elon Musk announced on Thursday that the company will be moving its headquarters to Texas’ Austin from Silicon Valley. The decision was announced at an annual stakeholder’s meet of the automobile giant.

Tesla’s stakeholder meeting on Thursday was conducted at the company’s gigafactory in Austin, a city that has witnessed a flurry of tech company relocations in recent years. Prior to the 2021 meeting, the company used to hold the gathering in California’s Bay Area.

However, the announcement was an expected one. In May 2020, Alameda County shuttered the operations of the company in order to curb the spread of COVID-19, a move that was not well received by Elon Musk. The SpaceX founder threatened to take his business outside the state. 

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He wrote on Twitter, “Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately.”

A follow-up tweet read, “Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependent on how Tesla is treated in the future. Tesla is the last carmaker left in CA.”

However, Tesla’s fallout with Alameda county authorities was left unaddressed at the 2021 annual stakeholder meeting on Thursday. Instead, Musk said that the relocation of the automobile giant’s headquarters was being done to provide a more accessible location to the employees.

Musk said at the meeting in Austin, “It is tough for people to afford houses and people have to come in from far away”, according to reports TechCrunch.

He added, “There is a limit to how big you can scale it in the Bay Area, so we are here in Western era factories like five minutes from the airport, 15 minutes from Downtown.”

The Tesla CEO further announced that the company has plans to construct an “ecological paradise” at the new headquarters, which will be located near the Colorado River.