5 ms·

Tesla moving headquarters to Texas from California

52 points by testrun 5y ago

mynameishere 5y ago
You might think, "That's a no-brainer." When the racial shakedowns start costing 137 million a pop, you have no choice but to get out. Problem is: Texas is going the same way as California. Tesla (and every other fat target) might want to leapfrog and go straight to Tennessee or something.
aaron_m04 5y ago
This is a shameful action for Tesla given recent anti-choice legislation there.
- clockworkhavoc 5y ago
  Shameful that aborting a human life was ever legal in the first place…
- mulcahey 5y ago
  Just as one's votes don't represent a sponsorship of every policy of the party they voted for, I think it's a stretch to say scaling business in the state represents a sponsorship of their social polices. If anything, Tesla will be brining a bunch of blue voters from CA which could help to push back against such laws.
  - romwell 5y ago
    >I think it's a stretch to say scaling business in the state represents a sponsorship of their social polices It is sponsorship in the most literal sense: the taxes paid by the company are propping up that state's administration and its policies. It's voting with one's feet. The potential migration wave of blue voters is just a positive side effect.
- calvinmorrison 5y ago
  This is a great action for Tesla given recent pro-life legislation there
- tenpies 5y ago
  Anyone who feels strongly about it is welcome to boycott Tesla and buy another vehicle from . . . I guess no vehicle for you since it seems every car company is based in areas that are more protective of life, but I suppose that's good because public transit is better in every way to even the "greenest" EV.
  - comrh 5y ago
    What about Germany, UK, Italy...
- gleenn 5y ago
  Moving factories and headquarters isn't fast, they've been talking about this for years. The anti-choice legislation is very recent. Also, Biden just blocked it, so the laws you don't like might even be rolled back by the time they get there.
  - nobody9999 5y ago
    >Also, Biden just blocked it, so the laws you don't like might even be rolled back by the time they get there. Citation needed.
giraffe333 5y ago
Duplicate: https://news.ycombinator.com/item?id=28793615 https://news.ycombinator.com/item?id=28793615
xrd 5y ago
Low income taxes are good for employees and very lax labor laws are good for the company, but both aren't good for the employee and the company isn't affected by the former.
- GaryTang 5y ago
  Lax labor laws are incredibly good for the employee as it contributes to more opportunities and thus upward pressure on wages. In states with lax labor laws, it’s not who you know but what you know. Edit: Citation provided below https://www.reuters.com/business/autos-transportation/tesla-moving-headquarters-austin-texas-says-ceo-musk-2021-10-07/ https://www.reuters.com/business/autos-transportation/tesla-...
  - romwell 5y ago
    >Lax labor laws are incredibly good for the employee as it contributes to more opportunities and thus upward pressure on wages. In states with lax labor laws, it’s not who you know but what you know. Citation needed.
    - missedthecue 5y ago
      Who has had faster wage growth over the past 10 years- France or China?
      - dragonwriter 5y ago
        > Who has had faster wage growth over the past 10 years- France or China? The one that started out less fully industrialized, because of the opportunity to import technology and make catch-up gains, as one would expect if labor laws had no contribution.
      - romwell 5y ago
        Did you mistake the comment input form with a Google query input field, or was it a bad-faith question?
Kenji 5y ago
[dead]
romwell 5y ago
Eh, good riddance. Also, pragmatically, if this means that more tech workers end up relocating to Texas, this will hasten the shift in Texan politics. Most tech workers are left-leaning if only because educated people are left-leaning. And let's be honest, if you are working for a salary, the Republican party does not represent your interests. Given how covid is currently affecting Texas, the next election cycles are going to be interesting.
- texasviking 5y ago
  If Tesla is moving it’s headquarters to get away from the unfavorable political landscape of California, why would it want to hasten a shift in Texas politics to something that resembles California?
  - flud 5y ago
    It wouldn't, but it doesn't mean it won't
  - RandomBK 5y ago
    Liberal social politics doesn't necessarily equate to liberal economic politics. As highly paid engineers tend to also be affected by high taxes, etc. it's possible we'll see a move towards liberal social policies (i.e. abortion) while business law more-or-less stays put.
    - romwell 5y ago
      > As highly paid engineers tend to also be affected by high taxes The engineers also tend to be affected by the things the taxes are collected for. Like, say, healthcare in case you get unemployed.
      - RandomBK 5y ago
        Very true. That's why I said social and economic policy doesn't _necessarily_ equate. There's a connection, but not 1:1. Like all states, Texas wastes more than enough money for it be a consistent position to simultaneously support better health care while resisting higher taxes.
ricw 5y ago
So they’re moving to a state in which they’re not allowed to sell their own cars due to dealership laws? What kind of signal is this sending? This is the single dumbest thing Musk could do. A big F to the state that has promoted him to where he is, that contains the vast majority of his fan and customer base. All to save some taxes. I used to promote Tesla to friends. That’s certainly over.
- halfmatthalfcat 5y ago
  This is the one thing that stops you from promoting Tesla? lmao
- keyle 5y ago
  The writing was on the wall for a long time...
- gleenn 5y ago
  If you think subtle signaling based on being able to have a dealership is more important than the huge tax implications, production line materials, and labor costs, you are mistaken on how mega corps are run. Follow the money. Tesla hasn't cared about dealerships ever.
- kodah 5y ago
  Theoretically, by being in Texas they could make a strong case to lobby the legislature to change that. I believe this sort of thing was fought by Michael Dell as well, since these laws don't just affect cars. It's also good to remember that that law was put in place because people would buy cars and there was nowhere to service them. Much of Texas is still rural to some degree.
- hlesesne 5y ago
  Ummm. California.
hh3k0 5y ago
There's a certain hilarity in the timing of this, considering Elon (Texas) and Grimes' (LA) recent break-up due to a long-distance thing not working out for them.
rcpt 5y ago
If the goal is housing workers I think anywhere with sane property tax law instead of Californian feudalism would work well. NJ, New York, Pittsburgh: all improvements. Texas also has good tax law which is fair to newcomers but all the other stuff seems like it'd be a real drag on hiring.
otrahuevada 5y ago
Texas makes a lot more sense for their HQ from a financial perspective and a personal values one, for their C-levels at least. What I do wonder is how this is going to affect the internal composition of the company; I'm fairly sure a sizable % of their employees, especially women and POC, would rather gtfo than move over there.
- jmugan 5y ago
  It's Austin.
  - nobody9999 5y ago
    >It's Austin. Regardless of where in Texas it is, SB8[0] still applies. Go and ask some folks you know who have working female reproductive systems whether or not they want to live in Texas. [0] https://legiscan.com/TX/text/SB8/id/2395961 https://legiscan.com/TX/text/SB8/id/2395961
  - bb88 5y ago
    Doesn't make it LA/SF.

52 points by testrun 5y ago

You might think, "That's a no-brainer." When the racial shakedowns start costing 137 million a pop, you have no choice but to get out. Problem is: Texas is going the same way as California. Tesla (and every other fat target) might want to leapfrog and go straight to Tennessee or something.

aaron_m04 5y ago

This is a shameful action for Tesla given recent anti-choice legislation there.

clockworkhavoc 5y ago
Shameful that aborting a human life was ever legal in the first place…
mulcahey 5y ago
Just as one's votes don't represent a sponsorship of every policy of the party they voted for, I think it's a stretch to say scaling business in the state represents a sponsorship of their social polices. If anything, Tesla will be brining a bunch of blue voters from CA which could help to push back against such laws.
- romwell 5y ago
  >I think it's a stretch to say scaling business in the state represents a sponsorship of their social polices It is sponsorship in the most literal sense: the taxes paid by the company are propping up that state's administration and its policies. It's voting with one's feet. The potential migration wave of blue voters is just a positive side effect.
calvinmorrison 5y ago
This is a great action for Tesla given recent pro-life legislation there
tenpies 5y ago
Anyone who feels strongly about it is welcome to boycott Tesla and buy another vehicle from . . . I guess no vehicle for you since it seems every car company is based in areas that are more protective of life, but I suppose that's good because public transit is better in every way to even the "greenest" EV.
- comrh 5y ago
  What about Germany, UK, Italy...
gleenn 5y ago
Moving factories and headquarters isn't fast, they've been talking about this for years. The anti-choice legislation is very recent. Also, Biden just blocked it, so the laws you don't like might even be rolled back by the time they get there.
- nobody9999 5y ago
  >Also, Biden just blocked it, so the laws you don't like might even be rolled back by the time they get there. Citation needed.

giraffe333 5y ago

Duplicate: https://news.ycombinator.com/item?id=28793615 https://news.ycombinator.com/item?id=28793615

xrd 5y ago

Low income taxes are good for employees and very lax labor laws are good for the company, but both aren't good for the employee and the company isn't affected by the former.

GaryTang 5y ago
Lax labor laws are incredibly good for the employee as it contributes to more opportunities and thus upward pressure on wages. In states with lax labor laws, it’s not who you know but what you know. Edit: Citation provided below https://www.reuters.com/business/autos-transportation/tesla-moving-headquarters-austin-texas-says-ceo-musk-2021-10-07/ https://www.reuters.com/business/autos-transportation/tesla-...
- romwell 5y ago
  >Lax labor laws are incredibly good for the employee as it contributes to more opportunities and thus upward pressure on wages. In states with lax labor laws, it’s not who you know but what you know. Citation needed.
  - missedthecue 5y ago
    Who has had faster wage growth over the past 10 years- France or China?
    - dragonwriter 5y ago
      > Who has had faster wage growth over the past 10 years- France or China? The one that started out less fully industrialized, because of the opportunity to import technology and make catch-up gains, as one would expect if labor laws had no contribution.
    - romwell 5y ago
      Did you mistake the comment input form with a Google query input field, or was it a bad-faith question?

Kenji 5y ago

[dead]

romwell 5y ago

Eh, good riddance. Also, pragmatically, if this means that more tech workers end up relocating to Texas, this will hasten the shift in Texan politics. Most tech workers are left-leaning if only because educated people are left-leaning. And let's be honest, if you are working for a salary, the Republican party does not represent your interests. Given how covid is currently affecting Texas, the next election cycles are going to be interesting.

texasviking 5y ago
If Tesla is moving it’s headquarters to get away from the unfavorable political landscape of California, why would it want to hasten a shift in Texas politics to something that resembles California?
- flud 5y ago
  It wouldn't, but it doesn't mean it won't
- RandomBK 5y ago
  Liberal social politics doesn't necessarily equate to liberal economic politics. As highly paid engineers tend to also be affected by high taxes, etc. it's possible we'll see a move towards liberal social policies (i.e. abortion) while business law more-or-less stays put.
  - romwell 5y ago
    > As highly paid engineers tend to also be affected by high taxes The engineers also tend to be affected by the things the taxes are collected for. Like, say, healthcare in case you get unemployed.
    - RandomBK 5y ago
      Very true. That's why I said social and economic policy doesn't _necessarily_ equate. There's a connection, but not 1:1. Like all states, Texas wastes more than enough money for it be a consistent position to simultaneously support better health care while resisting higher taxes.

ricw 5y ago

So they’re moving to a state in which they’re not allowed to sell their own cars due to dealership laws? What kind of signal is this sending? This is the single dumbest thing Musk could do. A big F to the state that has promoted him to where he is, that contains the vast majority of his fan and customer base. All to save some taxes. I used to promote Tesla to friends. That’s certainly over.

halfmatthalfcat 5y ago
This is the one thing that stops you from promoting Tesla? lmao
keyle 5y ago
The writing was on the wall for a long time...
gleenn 5y ago
If you think subtle signaling based on being able to have a dealership is more important than the huge tax implications, production line materials, and labor costs, you are mistaken on how mega corps are run. Follow the money. Tesla hasn't cared about dealerships ever.
kodah 5y ago
Theoretically, by being in Texas they could make a strong case to lobby the legislature to change that. I believe this sort of thing was fought by Michael Dell as well, since these laws don't just affect cars. It's also good to remember that that law was put in place because people would buy cars and there was nowhere to service them. Much of Texas is still rural to some degree.
hlesesne 5y ago
Ummm. California.

hh3k0 5y ago

There's a certain hilarity in the timing of this, considering Elon (Texas) and Grimes' (LA) recent break-up due to a long-distance thing not working out for them.

rcpt 5y ago

If the goal is housing workers I think anywhere with sane property tax law instead of Californian feudalism would work well. NJ, New York, Pittsburgh: all improvements. Texas also has good tax law which is fair to newcomers but all the other stuff seems like it'd be a real drag on hiring.

otrahuevada 5y ago

Texas makes a lot more sense for their HQ from a financial perspective and a personal values one, for their C-levels at least. What I do wonder is how this is going to affect the internal composition of the company; I'm fairly sure a sizable % of their employees, especially women and POC, would rather gtfo than move over there.

jmugan 5y ago
It's Austin.
- nobody9999 5y ago
  >It's Austin. Regardless of where in Texas it is, SB8[0] still applies. Go and ask some folks you know who have working female reproductive systems whether or not they want to live in Texas. [0] https://legiscan.com/TX/text/SB8/id/2395961 https://legiscan.com/TX/text/SB8/id/2395961
- bb88 5y ago
  Doesn't make it LA/SF.