Tesla Moving HQ from California to Texas

Tesla CEO Elon Musk announced Thursday night his company's headquarters is moving to Austin, Texas. Previously, Tesla operated out of Fremont, California.

VCG | Getty Images

Mustk made the announcement during his company's stockholders meeting, which was held at Tesla's Gigafactory in Austin.

He pointed out, however, that Tesla "will be continuing to expand [its] activities in California," not leaving the state completely. Rather, he said, the company wants to increase output in Fremont and a factory in Nevada by 50%.

He explained that the California factory "is jammed" and Tesla outgrew it.

"Here in Austin, our factory's like five minutes from the airport, 15 minutes from downtown, and we're going to create an ecological paradise here because we're right on the Colorado River. It's gonna be great," he said.

He contrasted that with the issues Tesla employees have faced in California, especially those who moved there to work for the company. "It's tough for people to afford houses," he said, adding, "We've taken it as far as possible but … there's a limit to how big you can scale it in the Bay Area."

Ahead of Thursday's shareholder meeting, Tesla raised the prices of its Model 3 and Model Y electric vehicles, making the Cybertruck the cheapest offering in its lineup.