A surprising conversation has emerged regarding the relationship between Donald Trump, California Governor Gavin Newsom, and Elon Musk.
In a recent podcast interview, Trump shared that Newsom had not reached out to Musk before the billionaire decided to relocate Tesla’s headquarters from California to Texas.
This revelation has sparked discussions about the potential implications for California’s economy and its relationship with prominent entrepreneurs.
Trump’s Inquiry About Newsom’s Outreach
During his chat with entrepreneur Patrick Bet-David, Trump recounted asking Musk whether he had received any communication from Newsom.
“Did he call and say, ‘can we have dinner, I’d love you to stay here, and we’ll work out some tax benefits or some incentive to stay?’” Trump recalled asking Musk.
To his astonishment, Musk replied that Newsom never made that call. Trump expressed his surprise, noting, “You’re talking about thousands of workers and prestige.”
Musk’s Move to Texas
The decision for Musk to move Tesla’s headquarters to Austin, Texas, was finalized in December 2021.
Musk cited the unaffordability of housing in the Bay Area as a significant factor, forcing many employees to endure lengthy commutes.
Before this move, Musk had already been clashing with California officials, particularly regarding COVID-19 restrictions that temporarily shut down Tesla’s plant in the state.
Furthermore, California regulators had launched investigations into the company’s treatment of workers.
Bet-David’s Reaction
Bet-David, in response to Trump’s comments, highlighted the implications of such inaction from state leadership.
“The biggest entrepreneur in your state leaves, and you don’t call him,” he pointed out, emphasizing the importance of proactive engagement with industry leaders.
Musk’s Broader Moves and Controversies
Musk’s shift to Texas wasn’t limited to Tesla. He announced plans to relocate his other companies, SpaceX and X, to Texas as well.
This decision came after Newsom signed a controversial law regarding transgender rights, which Musk labeled as “the final straw.”
Despite moving his headquarters, Tesla still maintains its engineering base in Palo Alto, California.
Newsom’s Response
In a joint press conference announcing the move, Newsom expressed pride in California’s manufacturing relationship with Tesla, stating, “We’re changing the world through our historic investments, our conveyor belt for talent, and partnerships with companies like Tesla.”
This indicates that while Tesla’s headquarters may be in Texas, California still plays a vital role in the company’s operations.
Tesla’s Hiring Practices
Interestingly, despite the headquarters relocation, Tesla has continued hiring at its California facility, with hundreds of job openings posted in July 2023, as reported by the San Francisco Chronicle.
This suggests that the company is still invested in maintaining a presence in California, despite Musk’s criticisms.
Musk’s Political Involvement
Musk, who is recognized as the richest person globally, has been increasingly vocal about his political affiliations, particularly his support for Trump.
His recent activities include a rally appearance with Trump in Pennsylvania and the establishment of a political action committee (PAC) to support his initiatives.
Notably, he offered financial incentives to registered Pennsylvania voters, including a $1 million lottery-style giveaway to encourage sign-ups for a petition related to free speech and Second Amendment rights.
What’s Next?
As tensions between Trump, Newsom, and Musk continue to unfold, the implications for California’s business environment and political landscape remain uncertain.
With Musk’s significant financial contributions to political causes, he may influence the future direction of both the tech industry and state policies.
How these dynamics play out will be fascinating to observe.
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