SAN FRANCISCO (KRON) – California Gov. Gavin Newsom is responding to Elon Musk’s announcement of Tesla leaving its Palo Alto headquarters and relocating to Texas.
“I’ve known Elon 20 years, I’ve appreciated the investments he’s made, his innovative spirit… what an extraordinary talent,” Newsom said Friday.
Newsom went on to note California’s regulatory environment and tax breaks helped Tesla grow, and the state is a leader in electric vehicle manufacturing.
“I have deep reverence for that individual [Elon], but I also have deep reverence for this state,” he added.
Musk announced during Thursday’s meeting with shareholders that Tesla’s headquarters will be relocating from Palo Alto to Austin, Texas.
“I’m excited to announce we are moving our headquarters to Austin, Texas,” Musk said.
“Our factory is five minutes from the airport, 15 minutes from downtown, and we’re going to create an ecological paradise because we’re right on the Colorado River. It’s going to be great,” Musk said.
In 2020, Musk had threatened to move headquarters out of the Bay Area to Texas after a high-profile spat with county leaders over whether the factory should remain closed during the COVID-19 pandemic.
This move follows companies like Oracle and Hewlett Packard, who both moved to Austin last year.
Musk has been critical of California before.
“California has been winning for a long time, and I think they’re taking it for granted,” he said.