Tesla CEO Elon Musk confirmed his personal move from California to Texas and insisted the decision was motivated by business interests. The executive pointed to the big projects that Tesla and SpaceX are undertaking in Texas and taking residence in the state will allow him to focus on these developments.
Before moving away from California, Musk got a driving license in Texas and subsequently transferred some of his business operations there. This week, the Tesla boss confirmed to The Wall Street Journal that he longer lives in the Golden State.
Tesla is building the Gigafactory Austin in the Lone Star state while SpaceX is working on a spaceship program, two undertakings that Musk said will demand his time and attention, which should justify his transfer of residence.
However, the outspoken Tesla chief did not address the concerns that he intends to switch HQ as well by relocating the bulk of his business operations, which Electrek said could amount to a bad move.
It was clear that Musk was frustrated by the strict lockdown rules in California and he expressed his displeasure by picking a fight with officials of the state government. The executive threatened to leave in the heat of his war of words with California authorities but conceded that Tesla will stay for now.
He hinted though that over the long term, Tesla's presence will require serious reevaluation.
Musk has been critical of California and claimed that the state has grown complacent due to its successful run. The U.S. state is one of the largest economies in the world and the Tesla boss felt that local authorities have not been quite friendly to business.
The maverick chief claimed that the business environment in California is not exactly conducive for growth, adding that such will not encourage to stay in the state. Still, Musk opted not to give the specific reasons for his decision to move out after his many years of residence in the state.
Yet the one intriguing feature of Texas that might have attracted Musk is the absence of income tax in the state. As CNET pointed out, the Tesla chief is now the second richest man in the world, and living in a state that is friendly to his stature would not be a bad thing.
That Texas is now the better home will be highlighted soon as Musk stands to collect stock-based compensation from his business operations. The estimate points to the CEO earning a whopping $50 billion, and it's hard to deny that his recent change of address will result in billions of personal savings.
