Tesla will soon get a new home, as the company announced plans to relocate its headquarters from Palo Alto, California, to Austin, Texas.

"I'm excited to announce that we're moving our headquarters to Austin, Texas," said Elon Musk, Tesla CEO, during the company's annual shareholder meeting on Oct. 7. 

CNN reported that Musk cited housing affordability and long commutes as two burdens Tesla employees are facing at its current location as reasons for the announced move. 

“It’s tough for people to afford houses, and people have to come in from far away… There’s a limit to how big you can scale in the Bay Area,” reported CNBC. 

Despite the move, Tesla still has plans to increase production and expand activities in California. 

“This is not a matter of… Tesla leaving California,” said Musk.

“Our intention is to increase output from Fremont... by 50%,” he added.  

Tesla is just the latest large, multimillion dollar corporation to move its headquarters from California to Texas. 

Over the past year, Oracle and Hewlett Packard Enterprise both announced plans to move its headquarters from The Golden State to The Lone Star State. 

The proposed move to Texas has likely been in the works for well over a year. 

During the beginning of the pandemic, Musk mentioned the possibility of leaving California due to the state’s strict pandemic-related restrictions that made it difficult for the electric car company to restart its operations. 

Musk himself moved to Texas from California in Dec. 2020 to focus on the electric-car maker’s new plant in the state, the Gigafactory, as well as his SpaceX aerospace company. 

The move to Texas was to help reduce his personal tax burden and be closer to a SpaceX launch site in Boca Chica, Texas. 

Musk is the richest person in the world, according to Bloomberg’s Billionaires Index, as his personal wealth is currently at $224 billion. His wealth skyrocketed an extra $10.6 billion after a share sale by existing investors valued SpaceX at over $100 billion. 

At the moment, there is no word on when Tesla’s headquarters move to Texas will officially take place.