Tesla Hasn't Been Entirely Truthful About Leaving California

Tesla CEO Elon Musk first publiclyexpressed his frustrationwith the state of California well over a year ago when the coronavirus pandemic initially struck. He faced off against state health authorities who demanded Tesla's Fremont factory comply with lockdown and closure procedures. An agreement was ultimately reached but the experience, in part, convinced Musk the carmaker needed to move its headquarters out of state.

Last week, the CEO announcedTesla is moving its HQfrom Palo Alto, California to Austin, Texas. The Fremont factory, home of theTesla Model 3, will not close, however, as demand reminds higher than ever.

ButReutersreports Tesla won't abandon Palo Alto entirely. An inside source claims Tesla has agreed to lease office space from Hewlett-Packard, Inc. The information and technology company's offices are already close to Tesla's. So far, Tesla has leased 325,000 square feet of space from HP. That's not exactly a couple of cubicles.

Musk's HQ announcement initially came across that he intended to leave California entirely, save for the Fremont plant. This is not true, assuming this report is accurate. Palo Alto may no longer be the place where Musk goes to work every day, but Silicon Valley is not being abandoned by Tesla's white-collar workforce.