The move is largely symbolic, but carries a strong business argument as Tesla matures as a manufacturing company and pushes toward launching its first pickup truck. The bottom line is that although Tesla has done a lot for the San Francisco Bay Area, Texas is a far better location for a new car factory — and Tesla is going to build one near Austin. Although Tesla is currently the most valuable automaker on the planet, it isn't doing everything right. Its flagship factory has always been an anomaly, for example. Located in Fremont, California, the plant has been an economic boon for the San Francisco Bay area, but for the US auto industry, it's borderline off the grid.