Elon Musk says he will move Tesla headquarters from California to Texas

Musk cited the rising cost of living in California
Elon Musk in Berlin, Germany, Dec. 1

Tesla CEO Elon Musk will move his headquarters from California to Texas, the businessman reportedly announced. 

According to the Associated Press, Musk on Thursday gave no timeline for the move when he told company shareholders his plans. Musk said he will relocate the headquarters to Austin.

Some of the reasons Musk gave were rising house costs and the skyrocketing cost of living in California. 

“Just to be clear, though, we will be continuing to expand our activities in California. This is not a matter of leaving California,” Musk said at the annual shareholders meeting. 

As a result of Musk's announcement, state leaders started speaking out about the urgency of addressing California's cost of living. 

“Mr. Musk’s announcement highlights yet again the urgency for California to address our housing affordability crisis and the many other challenges that make it so difficult for companies to grow here,” said the president and CEO of the Bay Area Council, Jim Wunderman. 

Musk's move is the latest among a series of Silicon Valley companies trying to escape the high costs of living in California. 

The AP reports that last year the tech giant Oracle Corporation decided to move to Austin as well, citing growing costs in California.