Elon Musk Moves To Texas, Leaving Los Angeles
After months of speculation, SpaceX and Tesla Inc. chief executive Elon Musk confirmed Tuesday that he is moving to Texas.
The Los Angeles resident made the announcement at "The Wall Street Journal" CEO Council summit, citing Silicon Valley's "outsized influence in the world," which he believes will be reduced as a symptom of the coronavirus pandemic. "I think we'll see some reduction in the influence of Silicon Valley," he said.
Musk criticized California, calling it complacent, with its powerhouse status. "If a team has been winning for too long they do tend to get a little complacent, a little entitled and then they don't win the championship anymore." he said. "California's been winning for a long time. And I think they're taking them for granted a bit," referring to the state's innovators.
He joins an "exodus" of Silicon Valley executives and employees who are leaving the state as remote work becomes a norm, to escape California's stricter regulations and higher taxes. Musk, who became the second richest man in the world, next to Amazon head Jeff Bezos, after Tesla shares soared, stands to benefit from Texas's lack of a state income tax.
Earlier this week, Bloomberg News reported that the Musk Foundation quietly moved to Texas in October, a move that had been in the works since the summer. Musk has suggested several times online earlier this year that he was considering moving.
A week later, Musk took to Twitter again, to disagree with Alameda County's shelter-in-place rules, which were stricter than the state's COVID-19 guidelines.
"Tesla will now move its HQ and future programs to Texas/Nevada immediately," he tweeted. "If we even retain Fremont manufacturing activity at all, it will be dependen [sic] on how Tesla is treated in the future."
Tesla then briefly sued the county, dropping the suit a little over a week later.
Despite his move, Musk said both Tesla and SpaceX will continue the majority of their operations in California in his Tuesday announcement. In Tesla's second-quarter earnings call in July, Musk confirmed that a second factory would be constructed in Austin, to produce Tesla's Cybertruck, its Semi, Model 3 and Model Y.
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NFTs (non-fungible tokens) are a novel form of ownership that could rejigger the financial landscape for creators. Even if the market for some of them proves frothy, this blockchain-based technology presents a unique way for artists to make money and engage their fans. With experimentation already underway, the gates are open for them to do what they do best: get creative.
Several startup founders and musicians are looking to this incipient market not just as a means of selling digital collectibles, but as a unique way to offer fans exclusive, paid experiences.
"Any new avenue of potential profit is exciting in the music industry, considering the lack thereof from streaming and [the need to rely on] touring," said Brian Spencer, one half of the L.A.-based musical duo FINKEL.
There's nothing new about creators offering fans exclusive perks. What is new is that they can now be linked to an NFT that also functions as a "key" or "passport." Many artists are hoping this linkage can stoke demand for perks, thanks to the innate human attraction to ownership.
"There's a lot of psychological evidence that owning things matters a lot to people," said Valentin Haddad, a professor at UCLA Anderson School of Management who studies how and why people make financial decisions.
He pointed to the so-called "endowment effect," which, research has suggested, makes people value things more when they own them, simply because they own them. Since NFTs are a certificate of ownership, linking them to an experience – like a backstage pass, or a producer credit – should boost the value fans see in those experiences, Haddad said.
"I think the idea of tying some experiences, tying something more special, to the object [underlying the NFT] is going to increase," he said. "We're going to see lots of creativity."
Illmind is auctioning 10 NFTs linked to audio files he created that owners can use royalty free.
Rikin Mantri's recently launched NFT-minting and -trading platform, Curio, has sold about $130,000 worth of tokens tied to graphic novel characters the company licensed, and it plans to expand soon into other IP, including music. Mantri sees the eye-popping prices capturing headlines as indicative of a bubble, but thinks NFTs have enduring potential.
"We think NFTs have a strong use case in building digital collectible collections and offering experiences around those collectibles," he said. "It's a completely new incremental revenue stream."
Kings of Leon, the Grammy-winning band, released their new album last month alongside a series of NFTs, six of which were high-end "golden ticket" versions that granted token owners lifetime front-row concert tickets. In February, 3LAU, a DJ, auctioned off a topshelf NFT that entitled one fan to creatively direct a new composition.
Rapper Post Malone is planning to sell an NFT linked to a private game of beer pong. Illmind, a Grammy-winning DJ, is auctioning 10 NFTs linked to audio files he created that owners can use royalty free. Electronic musician Aphex Twin recently turned an NFT into a digital scavenger hunt. And Logan Paul, a YouTuber, linked an NFT to the opportunity to watch him unbox rare Pokémon cards.
Other creators are taking a less experiential and more charitable approach to offering NFT products. Street-artist Shepard Fairey, best known for designing the Obama "Hope" poster, is working with East Hollywood-based Verisart to auction off a digital artwork as an NFT, and donating the proceeds to Amnesty International. Pussy Riot, a Russian feminist punk rock group led by activist Nadya Tolokonnikova, recently minted four NFTs tied to a video produced by young AR pioneer Asad Malik of La Cañada-based Jadu, some of the proceeds of which went to a shelter for domestic abuse survivors.
Meanwhile as the metaverse inches closer, the range of perks and experiences that can be tied to NFTs is growing. One sign of things to come is Decentraland, a virtual world with its own blockchain-enabled currency that has hosted digital parties that require NFT-ownership for entry.
The same technology that enables these unlockable perks, whether digital or in-person, also allows artists to retain a financial stake in all future sales of the NFTs they issue. Stipulations like sending 10% of the price paid for an NFT to a specified bank account can be executed automatically: thus the term "smart contract."
Smart contracts are one element that distinguishes the Ethereum blockchain, on which most NFTs run, from the blockchain that underpins Bitcoin and many other cryptocurrencies.
They're also what could make NFTs helpful to smaller artists in particular. Since smart contracts can theoretically automate tasks like preventing fraud and scalping, they open up new opportunities.
"It's giving artists lots of access to ways to share experiences and share things that big artists could always do [but] small artists couldn't," Haddad said. "The benefits are likely to accrue to the top, but I think it will benefit everybody by creating a better way to exchange with your fans."
Artists' NFT Concerns
One downside to NFTs is the high volume of electricity they use, which can harm the environment. That's turning some artists away from them for now.
FINKEL is unlikely to pursue NFTs until the environmental concerns can be addressed, Spencer said.
One way of doing so could be a shift in how the blockchain works. Validating who owns what on a blockchain has largely relied so far on a method called "proof-of-work," which requires intensive computation that uses an immense amount of electricity. Some observers say an alternative method, called "proof-of-stake", would require less and could be less environmentally harmful. Although proof-of-stake has not been widely adopted, Ethereum has publicly stated it wants to transition to it, in part because of its environmental benefits.
Beyond environmental concerns, some artists bridle at NFT perks because of their inherent exclusivity and transactional nature.
Rebecca Arango, aka Oddnesse, thinks the tactic could perpetuate what she views as a deeper problem underlying the tenuous financial situation that many musicians find themselves in: fans have lost the human connection they once had with the artists behind the music they love.
"It's like the music just comes and goes and it'll always be there, and if one artist goes broke and gives up, there's always another one where that came from," she said.
But she concedes she may be fighting an uphill battle.
"I'm still going to advocate for the [intrinsic] value of the songwriting and the records," said Arango. "[But] if people are really into owning these digital tokens, I'll have to get with the program."
Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake
I wasn't a believer until I saw him in action. At a Tom Ferry event at the Seattle Convention Center, I observed thousands of people worshipping Tom Ferry, then and now, a legendary real estate coach, as he doled out words of wisdom during his presentations.
In many ways, Tom learned from the best. His dad is Mike Ferry, also a legendary real estate coach. Tom started working in sales at his dad's company, the Mike Ferry Organization, at 19. He eventually earned the position of president.
But Tom's entrepreneurial spirit led him to branch out on his own, and he expanded his personal brand and offerings — exponentially. Along the way, Tom's company partnered with Zillow, and that's how we became friends.
On this episode of Office Hours, Tom shares his career trajectory from sales at his dad's company to coaching phenom, the single biggest pitfall for work performance and his take on California's business climate.
Tom Ferry is the founder and CEO of Ferry International, the real estate industry's leading coaching and training company. He impacts professionals in a wide variety of ways – including rigorous accountability coaching, the popular #TomFerryShow delivering free, fresh and relevant real estate tips weekly, highly engaging training events, two best-selling books and his keynote speeches. (Bio from lllum).
dot.LA Sr. Podcast Producer & Editor Laurel Moglen contributed to this post.
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Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 75 companies and is incubating several more.