Published 19:05 IST, December 9th 2020
Elon Musk reveals he has shifted to Texas, says California has become 'less accommodating'
Elon Musk on December 8 revealed that he had relocated to Texas from California, where he plans to focus more on the new Tesla plant and his SpaceX venture.
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Elon Musk on December 8 revealed that he had relocated to Texas from California, where he plans to focus more on the new Tesla plant and his SpaceX venture. Back in May, Musk had threatened to move his electric car company to Texas, from California, where he has feuded with local officials about coronavirus restrictions. Now, while speaking at a conference hosted by The Wall Street Journal, Musk said that California has become “less accommodating” to successful entrepreneurs and start-ups, comparing the state to a sports team that takes winning for granted.
Musk said that California tends to get a little complacent, a little entitled, and then they don’t win the championship anymore. He also criticised California’s economic environment as another reason and said that the state “has been winning for a long time, and I think they’re taking it for granted”. Further, Musk even argued that Silicon Valley, which is home to some of the largest and most influential companies in the world, was declining in relevance.
Move to Texas could save Musk billions of dollars
Back in May, the business tycoon had said that he was selling his houses and his California properties too. He had clashed with public health officials in California over measure put in place to slow the spread of the coronavirus, which included shutting down car production at Tesla’s factory in Fremont, a city in the San Francisco Bay Area. Musk called COVID restrictions “fascist” and had even predicted in March that there would be almost no new cases of the disease by the end of April.
Speculation about a move by Musk or Tesla to Texas had increased in recent weeks. According to a CNBC report, many close friends and associates of the billionaire said that Musk is planning to move to the Lone Star State. Even the people who are well acquainted with him and are aware of his general plans to move to Texas said they don't know where exactly he stays and that he tries to keep those details private, it said.
In addition to the Austin plant Tesla is building, Musk is frequently drawn to Texas by his other company, SpaceX, which has substantial operations in the state, including a launch site on the Gulf of Mexico. His move to Texas sounds sensible as it has no state income tax while California has the highest tax regime in the United States. Elon Musk's move to shift to Texas could save him billions of dollars.
19:05 IST, December 9th 2020