Tesla is currently headquartered in Palo Alto, California.
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Elon Musk, the electric automaker's founder, recently expressed frustration with California's coronavirus lockdown restrictions and threatened a lawsuit against Alameda County, where Tesla's Fremont factory is located.
"Tesla is filing a lawsuit against Alameda County immediately," Musk wrote in a May 9 tweet, adding that the "Interim Health Officer" of Alameda County was acting contrary to California Gov. Gavin Newsom and President Trump in its decision to keep the county under lockdown for an extended period of time.
"Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately," Musk said in another tweet. "If we even retain Fremont manufacturing activity at all, it will be dependen[t] on how Tesla is treated in the future. Tesla is the last carmaker left in CA."
It is unclear whether Musk actually plans to follow through with his announcement, although Texas Gov. Greg Abbott tweeted, "Texas is a perfect fit for Tesla," on May 13.
Tesla is planning to build its next factory in Austin.
Musk's outrage may have been due in part to the fact that he was forced to shutter activity at Tesla's factories as part of the county's efforts to contain the spread of COVID-19, just as many other auto companies have done.
Musk's contract with the automaker included a clause that said if he could keep Tesla's stock at a specific level for a certain period of time, he could purchase as many as 1.69 million Tesla shares for $350/share, according to May SEC filings. The company's closing share price at the end of May was about $805/share, putting his total potential payout value at more than $770 million if he chose to act on it, according to tech news website Tech Crunch.
Almada County eventually reached a deal with Musk to reopen beyond basic operations in mid-May under specific guidance after the company defied local lockdown orders.
The electric automaker, founded in 2003, also has factories in Fremont, Calif.; Buffalo, NY; and Sparks, Nevada.