Musk cited the cost of housing in the Bay Area that has made it tough for many people to become homeowners

Tesla will relocate its headquarters from Palo Alto, California, to Austin, Texas, though the electric car maker will keep expanding its manufacturing capacity in the Golden State, AP reported, citing CEO Elon Musk.

Musk, who last year said he was moving to Texas from California, gave no timeline for the move when he addressed shareholders at Tesla’s annual meeting.

In the early days of the coronavirus pandemic, Musk clashed with San Francisco Bay Area health authorities trying to enforce shelter-in-place orders. At the time, he threatened to relocate Tesla’s operations to Texas or Nevada.

On Thursday, however, Musk cited the cost of housing in the Bay Area that has made it tough for many people to become homeowners, translating into long commutes.

“We’re taking it as far as possible, but there’s a limit how big you can scale it in the Bay Area,” he said Thursday. “Just to be clear, though, we will be continuing to expand our activities in California. This is not a matter of leaving California.”

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