Damage Control: Newsom Says Cali “Helped Create” Tesla, Says State’s Business Climate “Remains Strong”

Damage Control: Newsom Says Cali “Helped Create” Tesla, Says State’s Business Climate “Remains Strong”

California Governor Gavin Newsom took some light jabs at Elon Musk on Friday of last week after the Tesla CEO announced he was moving his company to Texas. 

California’s state policies “helped create” Tesla, Newsom said at a bill-signing ceremony in Oakland, according to Bloomberg.

Newsom also thanked Musk for his investments in the state, where Tesla got its start and opened its first factory. He called Musk “one of the world’s great innovators and entrepreneurs — I mean what an extraordinary, extraordinary talent.”

Then, he did damage control, telling anyone who would listen that the business climate in the state “remains strong” – despite the fact that businesses and citizens are tripping over themselves to move to states like Florida and Texas. 

As Bloomberg noted, companies including Oracle, Hewlett Packard Enterprise and Charles Schwab have all relocated out of the state in the past two years. 

Newsom also said California deserved credit for Musk’s success, since the state gave “Tesla hundreds of millions of dollars” in tax breaks. 

“Our regulatory environment helped create that company and grow that company. I have reverence and deep respect for that individual. But I also have deep reverence and respect for this state, and what we’ve done,” Newsom said. 

Recall, days ago we wrote that Tesla was moving its headquarters to Austin, Texas, from Silicon Valley. “There’s a limit to how big you can scale in the Bay Area,” Musk had previously said. 

David McCuan, chairman of Sonoma State University’s political science department, said: “Tesla as a brand represents not just Motor City USA, it represents Silicon Valley and Hollywood. Tesla is really a California-centric thing. But Elon Musk represents something larger than life, and that’s really Texas.”

Many were quick to point out a Tweet sent to Elon Musk from state lawmaker Lorena Gonzalez last year, where she wrote “F*ck Elon Musk”. 

F*ck Elon Musk.

— Lorena Gonzalez (@LorenaSGonzalez) May 10, 2020

“I receive tweets like that probably on an hourly basis and I’m staying here,” Newsom said, when asked if he thought the Tweet is what pushed Musk out of the state. 

CEO Elon Musk made the announcement of the move last Thursday at the company’s shareholder meeting. He stressed that Tesla will continue to expand in both California and Nevada, saying “we will continue to expand our activities in California. This is not a matter of Tesla leaving California. Our intention is to increase output from Freemont and giga-Nevada by 50%.”

As part of the overhaul, Musk unveiled what appears to be Tesla’s new logo: “Don’t Mess With Tesla.”


Tyler Durden
Mon, 10/11/2021 – 17:20

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