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For Top Talent Musk Returns Tesla Engineering Headquarters to Bay Area

Just over a year after relocating Tesla’s corporate headquarters to Texas, chief executive officer Elon Musk is opening the firm’s engineering headquarters back in California, where the company was founded and previously headquartered. 

With Tesla having left California due to COVID and other business regulations, likely including a business tax climate ranked 48th in the country by the Tax Foundation, this decision to return a significant portion of the may come as a surprise to those who see Musks’ personal move to Texas, acquisition of Twitter, and his anti-woke rhetoric as indication of a permanent business and political shift.

Despite the on-paper tax and regulatory advantages offered by Texas, California still remains the top destination for global technical talent, suggesting the decision to host Tesla’s engineering headquarters was driven by the need to draw from the best possible talent pool. 

After all, the Bay Area’s concentration of quality technical workers remains unchallenged by any other region in the United States — Boston comes at a distant second — due to the quality and abundance of nearby colleges and universities, and the network effect of already being so saturated with capital and talent. 

As higher interest rates drive tech companies to reduce headcounts and focus on profitability over growth, companies such as Tesla are poised to have a significantly easier time hiring as high-quality workers vie for limited positions, making California once again more attractive to businesses hoping to make use of the state’s unparalleled talent pool.