Tesla announced a new engineering headquarters in California, saying it would take over office space in Palo Alto formerly occupied by Hewlett Packard. Tesla CEO Elon Musk made the announcement Wednesday alongside California Governor Gavin Newsom (D), who called the announcement “another proof point of the renewable energy vibrancy that is California.”

Tesla was founded in San Carlos, California in 2003 and has called the state home for most of its 20 years of existence. In October 2021, the company abruptly moved its headquarters to Austin, Texas, in recognition of its new Gigafactory that was under construction in the state. Tesla also has Gigafactories in Nevada, Berlin, Buffalo, and Shanghai.

The company continues to operate its factory in Fremont, California, outside of San Francisco. And California is one of Tesla’s largest markets in the world. But Tesla CEO Elon Musk’s relationship with the Golden State has grown increasingly shaky over the years.

Musk previously threatened to pull Tesla’s entire operations out of California in 2020 based on his vehement disagreement with the state’s shelter-in-place orders during the height of the covid pandemic. Tesla even sued the county that the company’s California factory is in as a form of protest.

Musk himself moved to Texas toward the end of 2020, as SpaceX dramatically increased its presence in the southern tip of the state. He also said that he thought California had become too “complacent” with respect to its residents and businesses.

But Tesla has retained its presence in California. The company continues to invest in its Fremont factory and still maintains its old headquarters in Palo Alto. And California has invested in Tesla over the years, in the form of tax breaks and other taxpayer funded incentives. According to Newsom’s office, California has invested more than $3.2 billion in Tesla since 2009.