Tesla’s headquarters will be relocated from Silicon Valley to Texas, Elon Musk said
“I am pleased to announce that we are moving our headquarters to Austin, Texas,” said Elon Musk at the company’s annual shareholders’ meeting.
Elon Musk, CEO of Tesla, announced Thursday to investors that the company’s headquarters are moving from Silicon Valley to Texas, where it is building a plant.
“I am pleased to announce that we are moving our headquarters to Austin, Texas,” said Musk at the company’s annual shareholders’ meeting.
“But to be clear: We will continue to expand our activities in California.”
Tesla sales are skyrocketing, according to Musk, and the company is increasing shipments despite bottlenecks in computer chips and other components.
Musk stated that Tesla plans to increase production by 50 percent at its Fremont, California facility.
However, he claims that the facility has reached its processing limit.
“The first time we went in it was like a child in its parents’ shoes; tiny us and this huge factory, ”said Musk of the company’s first facility in Silicon Valley.
“Well, it’s like a spam can. We hit the sides of the bowl. “
He pointed out that the cost of living in Silicon Valley is high for workers and house prices are prohibitive for many, resulting in long commutes.
Musk has argued with California regulators and is one of several high-profile tech figures to leave the state for places with lower income taxes and less regulation.
Win through diversity
According to preliminary results, a proposal submitted by shareholders to have Tesla disclose more about the company’s diversity and inclusion efforts was approved despite opposition from the board of directors.
It requires that investors be routinely disclosed to full breakdowns of Tesla’s workforce by race and gender, as well as insights into the performance of diversity efforts.
“The business case for diversity is clear,” said Kimberly Stokes, vice president of Calvert Research and Management, who spoke on behalf of the proposal.
“As shareholders, we are concerned that Tesla’s lack of focus on equity, diversity and inclusion could affect the company’s ability to innovate in the future.”
Calvert’s winning proposal was one of four put on the agenda by investors urging Tesla to improve workers’ rights and wellbeing.
A California jury this week ordered Tesla to pay $ 137 million in damages to a black former employee for allegedly turning a blind eye to racism at the company’s Silicon Valley auto plant.
“You have awarded an amount that could be a wake-up call for American corporations,” said civil rights attorney Larry Organ, who represented the former Tesla employee.
“Do not participate in racist behavior and do not let racist behavior persist.”
According to court records, Owen Diaz was hired through a recruitment agency as an elevator operator at the electric vehicle manufacturer Fremont’s factory between June 2015 and July 2016, where he was exposed to racist abuse and a hostile work environment.
According to the lawsuit, the plaintiff came across “a scene straight out of the Jim Crow era” instead of a modern workplace.
Organ confirmed that Diaz was awarded $ 130 million in punitive damages and $ 6.9 million in emotional distress by a jury in San Francisco federal court on Monday.
Valerie Capers Workman, vice president of human resources, downplayed the racial abuse allegations in the lawsuit, but admitted that Tesla was “not perfect” at the time Diaz worked there.
Workman stressed that Tesla has changed since Diaz worked there, including the addition of a diversity team and an employee relations team dedicated to investigating employee complaints.