Elon Musk Moves To Texas, Leaving Los Angeles

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.

At the beginning of May, he tweeted "Will own no house." He then listed several of his Los Angeles properties on Zillow.

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.

Subscribe to our newsletter to catch every headline.

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.

Read more Show less
Sam Blake

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.

Read more Show less
Spencer Rascoff

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.

RELATEDTRENDING