New York : Why did Elon Musk, the CEO of Tesla, move from California to Texas?

New York :

Why did Elon Musk, the CEO of Tesla, move from California to Texas?

Elon Musk is considered by Bloomberg as the second richest person in the world.

Photo: BRITTA PEDERSEN / . / .

Tesla reported Tuesday that it seeks to raise up to $ 5 billion in capital through a share offering. The announcement came on the same day that the CEO, Elon musk, said he had moved his home to Texas.

This is the second sale of the company’s shares in three months. In September the company said it planned to sell $ 5 billion in common shares a day after it was announced that a share was divided into five. The sales announcement occurs when stocks have generated a strong rally before the interest of investors in the electric car market.

So far this year the shares of Tesla have gone up in more than one 600 percent, on Tuesday a share was listed at $ 649.88 dollars. The sale also seeks to finance capital expenditures such as the construction of a new factory in Germany and in Austin as well as preparing for the new launch of the “Cybertruck” truck during the coming year.

Why did Elon Musk move to Texas?

Elon Musk told the newspaper The Wall Street Journal which is also moving to Texas “because California has stopped supporting innovators.” The newspaper mentions that another reason for the move is because there is no income tax in Texas. Musk’s stake in Tesla is 18% and according to the Bloomberg Billionaires Index, Musk is the second richest person in the world, reaching a fortune of $ 128,000 million.

Although the report does not say where Musk has moved, he is likely living near Austin where Tesla is building a new car factory and where SpaceX has facilities.

Related: How Mexico defeated Elon Musk when he wanted to put ‘Teslaquila’ in his tequila.

Musk threatened to move Tesla’s Palo Alto, California headquarters to Texas earlier this year after a discussion with Aurora County officials over whether the San Francisco Bay car factory should remain closed due to coronavirus restrictions.

Tesla posted a net profit of $ 331 million for the period from July to September, generating its fifth consecutive quarter of profitability.

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