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Tesla Returns to California for New Engineering Headquarters

Elon Musk announced the new facility alongside California Gov. Gavin Newsom.

Tesla logo on a Supercharger
Smith Collection/Gado/Getty Images

After breaking up with California in 2021, Tesla is headed back to Palo Alto. In an announcement Wednesday alongside Gov. Gavin Newsom, Tesla CEO Elon Musk said the electric vehicle company's new engineering headquarters will be in Palo Alto, California. 

"We're excited to announce that Tesla's global engineering headquarters will be right here, the former headquarters of Hewlett-Packard," Musk said while speaking at the new HQ location in Palo Alto. 

The new offices in California are part of Tesla's push to hire engineers focused on research development and artificial intelligence, reported CNBC. It's unclear how many employees are expected to work at the new engineering headquarters. 

In 2021, Musk moved Tesla's corporate headquarters from Palo Alto to Austin, Texas, making good on threats to leave the state amid disagreements with local government at the start of the COVID-19 pandemic. Tesla continued to operate its vehicle plant in Fremont, California. It also has what it calls a gigafactory in Austin.

While Newsom on Wednesday praised Tesla's success and its history in California, Tesla is also facing scrutiny in the state. The California Department of Motor Vehicles has accused Tesla of false advertising in promoting its Autopilot and Full Self-Driving features, and the state's Department of Fair Employment and Housing is suing the carmaker for alleged racial discrimination

Tesla and the governor's office didn't immediately respond to requests for comment.