Tesla is shaking things up. The company announced Thursday that its headquarters will be moving from Palo Alto, California to Austin, Texas.

The announcement was not unexpected. Over a year ago, back in May of 2020, Musk tweeted that Tesla's headquarters would be moved to Texas or Nevada due to Musk's disagreement with Alameda County officials over the safety of his company's Fremont factory amid the coronavirus pandemic.

According to a recent CNN report, the company is also saying its decision to move stemmed from economic reasons. 

Elon Musk touched on this during Tesla's Thursday meeting with shareholders. 

Musk said there is a "limit to how big you can scale in the Bay area."

He also mentioned housing affordability and issues caused by long commutes to the Palo Alto location. The median home price in Palo Alto is $3.3 million.

In stark contrast, the median home price in Austin is $588,000.

And, Musk pointed out that the Austin factory is a mere five minutes from the airport and only 15 minutes from downtown. 

The move to Texas is something Musk himself has taken on. 

In December, the 50-year-old father of seven said he moved to Texas and announced that one of his other companies, SpaceX, is developing a rocket system in the Lonestar State. 

Though HQ will be in Austin, Musk anticipates an expansion of Tesla's operations in California. 

"This is not a matter of, sort of, Tesla leaving California," Musk said. He said the company expects to increase output from its Fremont and Nevada factories by 50 percent.