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PALO ALTO, Calif. (KRON) – Tesla will be moving its headquarters out of the Bay Area.

Tesla CEO Elon Musk announced in a meeting Thursday that the headquarters will be moved from Palo Alto to Austin, Texas.

“I’m excited to announce we are moving our headquarters to Austin, Texas,” Musk said.

Last summer, the company announced that its new gigafactory would be in Travis County, which is where Austin is located.

“Our factory is five minutes from the airport, 15 minutes from downtown, and we’re going to create an ecological paradise because we’re right on the Colorado River. It’s going to be great,” Musk said.

He continued to explain that, “this isn’t a matter of Tesla leaving California, our intention is to actually increase output.”

In 2020, Musk had threatened to move headquarters out of the Bay Area to Texas after a high-profile spat with county leaders over whether the factory should remain closed during the COVID-19 pandemic.

This move follows companies like Oracle, who announced their move to Austin last December.

In addition, PayCertify, a financial tech services company in the San Jose area, announced plans in April to move to Reno, Nevada.