From The Golden State to The Lone Star State: Elon Musk Confirms his move to Texas.
Speculations over the move of the billionaire from Silicon Valley to Texas made headlines after his ‘Last Straw’ tweet back on May 9th. Alas, it was confirmed by Elon, the move has taken place. Here are the motives that spurred his decision and will Tesla’s HQ be moving along with him?
After Decades in The Golden State, What Takes Tesla’s CEO to Texas?
When asked in a recent interview conducted by Matt Murray, WSJ’s editor-in-chief regarding the reason behind his move, the tech-fanatic only revealed the tip of the iceberg.
Musk has been traveling back and forth between his companies, which are dispersed between California and Texas. However his grandiose projects based in Texas are taking up most of his time alongside with his Berlin endeavour.
He is currently preoccupied with the SpaceX engine developing site in McGregor and the rocket production facility where the SpaceX vehicle ‘Starship’ is being tested, as well as the construction of Tesla’s Giga Texas assembly plant factory in East Austin.
Thus, it makes sense for him to relocate. Senator Ted Cruz of Texas has officially welcomed Musk in a recent tweet.
The Forefront Reason behind His Exodus
After some inquiry, it turns out that Musk’s iceberg runs aground. He did not hesitate to air out his frustrations with California. “California’s been winning for a long time. And I think they’re taking them for granted a little bit.”
The innovation guru made sure to emphasize the fact that not only do Tesla and SpaceX have massive operations in California, but that also Tesla is the last car manufacturing company operating in the State and SpaceX is the last aerospace company that continues to run significant manufacturing in it. He criticized the economic giant for taking those facts lightly and called it ‘complacent’ and ‘entitled’.
It’s also worth mentioning that California imposes the highest personal income tax levels and capital gains tax on its richest residents. With Musk becoming the second richest person in the world, this implication may not sit well with him. Texas on the other hand, has no personal income tax.
The Slow Boil of the Frog: Where does Musk Stand on Government Regulations?
According to Musk, the issue lies in regulations and bureaucratic systems being too finance oriented rather than prioritizing the cultivation of quality products and services, and the only fix is to remove them. In his opinion, the right role of the government and the best it could do for innovation is ‘Get out of the way’.
He believes that he couldn’t have hit all those milestones if it wasn’t for U.S. fertile soil that fostered innovation. If the U.S. wishes to maintain its ground fertile for start-ups and entrepreneurship, it must rid itself of ‘Artificial Monopolies’ and regulations that lead to ‘the slow boil of the frog’, he lamented.
The Future of California Vs. Texas: What Will It Look Like?
Back in May when Elon Musk filed a brief lawsuit against Alameda County and threatened to move Tesla’s headquarters to Texas or Nevada, his tweet was met ten days later by California Governor Gavin Newsom who told CNBC that he is “not worried” about Tesla CEO Elon Musk moving the company’s operations out of the state “anytime soon.”
Elon has not addressed what’s in stock for Tesla’s headquarters yet, but that does not imply that the water is still.
California has been witnessing an exodus. Tesla’s CEO is not the first to relocate away from it. This valiant move of his followed by his bold critiques of the state may influence other entrepreneurs to do the same.
Do you think America’s signature hub of innovation will be forever changed? Will The Lone Star state be welcoming more stars on board? Let us know where you stand.