Elon Musk Moving from Silicon Valley to Texas

Elon Musk has announced that he is leaving Silicon Valley for Texas and predicts that Mecca of Technology may lose its influence.

The billionaire declared that California has “too much influence in the world”, but that its power is waning.

Tesla is headquartered in California, but will build a new plant in Austin.

Space X – a space flight company – already has facilities in Texas.

Elon Musk told The Wall Street Jounal: “The two biggest things that I got going on right now are the Starship development in South Texas … and then the big new US factory for Tesla”

Living in California “wasn’t necessarily a great use of my time,” said Musk.

In May, Musk threatened to move Tesla to Texas after local authorities refused to allow the automaker to reopen its plant during the coronavirus pandemic.

“Frankly, this is the final straw,” he tweeted.

“Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependent on how Tesla is treated in the future.”

Republican Senator Ted Cruz, who represents Texas, welcomed Tesla’s chief executive in a tweet: “Texas loves jobs & we’re very glad to have you as a Texan,” he said.

There is great discontent with Silicon Valley, with regard to the cost of living, homelessness and high levels of crime.

Last week, business-focused technology company Hewlett Packard Enterprise (HP) announced it would move its headquarters to Houston, Texas. Its predecessor, Hewlett-Packard, was raised in a garage in Palo Alto in 1938, in the place now there is a sign with the words “birthplace of Silicon Valley”.

And Palantir – a leading technology data company – moved its headquarters from Silicon Valley to Denver, Colorado this year.

Musk compared the state of California to a successful sports team: “They tend to get a little complacent, a little bit full of rights and then they don’t win the championship anymore.”

Texas may also offer some tax breaks for the second richest man in the world.

The state of Texas does not collect personal income taxes, while California has some of the highest state tax rates in the United States.

Last month, Musk’s net worth jumped from $ 7.2 billion to $ 128 billion after Tesla’s stock soared.