Elon Musk has left California for Texas

[midian182]

In a nutshell: Elon Musk has swapped the Golden State for the Lone Star State. The second-richest person in the world said he has relocated to Texas from California to be closer to the new Tesla plant and Space X's planned launch site, though there were likely more reasons behind the move.

The billionaire revealed his change of address during an interview for The Wall Street Journal's annual CEO Council summit, reports The Verge. "The two biggest things that I got going on right now are the Starship development in south Texas," he told Matt Murray, the WSJ's Editor in Chief. "And then the big new US factory for Tesla."

"It wasn't necessarily a great use of my time here [in California]."

While being closer to the new Tesla factory outside of Austin and Space X's launch site near the village of Boca Chica is doubtlessly important to Musk, the CEO won't be shedding any tears over leaving California.

"If a team is winning for too long, they tend to get complacent," Musk said. "California has been winning for a long time, and I think they're taking it for granted."

Moving has been a long time coming. Musk tweeted, "I will own no home" on May 1 and later sold all four of his California homes for a combined $62.5 million.

Texas also offers financial incentives for Musk. Unlike California, which has some of the highest state tax rates in the US, Texas has no personal tax income. That's an enticing prospect for someone set to earn $50 billion in stock options; Musk would have to pay income tax on the profits when he exercises them if he stayed in California.

With Tesla's recent acceptance into the S&P 500, which measures the stock performance of 500 large companies listed on the US stock exchanges, its shares have jumped 670 percent this year. As Musk owns 20 percent of the EV giant, his fortune has increased by $129 billion to $157 billion, putting him behind only Jeff Bezos ($186 billion) on Bloomberg's Billionaires Index.

Another factor that could have influenced Musk is California's tighter Covid restrictions. Back in April, Musk said the lockdown is "fascist" and "forcibly imprisoning people in their homes," lambasting the Bay Area's shelter-in-place order. He also praised Texas for reopening businesses.

Permalink to story.

https://www.techspot.com/news/87898-elon-musk-has-left-california-texas.html

 

[Kirby1]

Good for him. He can go live in a state that likes people who can't get along with others.

 

[corvard]

Wee! California suxxx

Good for him. He can go live in a state that likes people who can't get along with others.

What are you on about? Socialism is not a constructive thing.

 

[Endymio]

...an enticing prospect for someone set to earn $50 billion in stock options; Musk would have to pay income tax on the profits when he exercises them if he stayed in California.

No. Only if he's exercising NSO options. I'm fairly sure these are simple incentive options, and thus he won't incur any tax burden from exercising them.

 

[dangh]

Wee! California suxxx
What are you on about? Socialism is not a constructive thing.

Neither is oligarchy.

 

[Endymio]

Neither is oligarchy.

Stuff and nonsense. For all his stock options, Musk has less political power in California than the lowliest Alameda County Commissioner -- as recent events have clearly shown.

 

[NicktheWVAHick]

Looks like CA will have to raise income taxes again to make up for the deficit. It’s simple economics. Raising taxes is always what’s best for promoting economic growth.

 

[Uncle Al]

The term "socialist" is so badly used these days .... it would benefit everyone if you actually looked up the word and the examples given. The USA has it's own certain form of socialism, practiced by and encouraged by our state and federal government. Even back as far as the 19th century we had it .... oh, not like what is more commonly referred to as communism, but we had it. The entire concept of a collective government is a socialist principle but it can be beneficial. Having a uniform military, commerce, banking, and emergency services are all part of a collective effort and have (for the most part) benefited the country.

Now don't get me wrong .... I think Musk is an arrogant, egotistical A-hole but most of the greatest successes have been lead by that similar personality. The main beef is that our free press doesn't point this out and hold him accountable as they used to do in the days of Edwin R. Murrow ...... sigh ......

 

[Superconductor]

Smart move

 

[corvard]

The term "socialist" is so badly used these days .... it would benefit everyone if you actually looked up the word and the examples given. The USA has it's own certain form of socialism, practiced by and encouraged by our state and federal government. Even back as far as the 19th century we had it .... oh, not like what is more commonly referred to as communism, but we had it. The entire concept of a collective government is a socialist principle but it can be beneficial. Having a uniform military, commerce, banking, and emergency services are all part of a collective effort and have (for the most part) benefited the country.

Now don't get me wrong .... I think Musk is an arrogant, egotistical A-hole but most of the greatest successes have been lead by that similar personality. The main beef is that our free press doesn't point this out and hold him accountable as they used to do in the days of Edwin R. Murrow ...... sigh ......

You love words so much. How about practice? Also, did you look up the word?

 

[Lionvibez]

Joe Rogan did the same thing to avoid the ridiculous taxes in cali

 

[Beerfloat]

Rarely has a more annoying human being created such good things.

 

[mgwerner]

We welcome you to Texas. Leave your liberal employees behind, we need none of the policies that ruined Kalifornia.

 

[mbrowne5061]

No. Only if he's exercising NSO options. I'm fairly sure these are simple incentive options, and thus he won't incur any tax burden from exercising them.

I'm glad I am not the only one would thought 'BS' when the author brought up the tax advantages. Musk's income, the kind that would be targeted by an income tax, is actually probably relatively modest. Now, if they had brought up property taxes, that might be some place Musk saves money, depending on what he sold and where, and what he buys and where. Or it may be a place he ends up spending more, generally states with lower income taxes have higher property taxes to compensate.

 

[netman]

Have fun with Texas Treacherous Rain, Long Lasting Tornadoes and Golf-sized Hails...!

 

[wiyosaya]

This must be Musk's evil plan to turn Texas blue.

 

[SixTymes]

Smart move.

 

[Endymio]

The entire concept of a collective government is a socialist principle

The above statement shows a near-criminal lack of understanding of the precepts of Socialism. Might I suggest this classic text on what the term actually means, a book I first read over 30 years ago.

In the interim, I'll give you a hint: Socialism is not simply a synonym for any and all collective social endeavors.

 

[Mr Majestyk]

Looks like CA will have to raise income taxes again to make up for the deficit. It’s simple economics. Raising taxes is always what’s best for promoting economic growth.

Actually it is, if it's raising taxes on the rich and giving tax cuts to the low end, it works wonders in transforming economies, but that's not the Amurican way, with 330 million self interest groups at work.

 

[Endymio]

Actually it is, if it's raising taxes on the rich and giving tax cuts to the low end, it works wonders in transforming economies

It worked wonders in the booming economies of Cuba and the former Soviet Union.

As for the US, since 47% of Americans already don't pay federal income tax, there aren't any cuts to be made in the low end. As for raising taxes on the wealthy, see how its working out for New York and California -- they're simply driving off the big earners, leaving the little guys to pay even more in taxes.

 

[Nargg]

Good for him. He can go live in a state that likes people who can't get along with others.

People in Texas can't even get along with each other.

He moved to Texas for one simple reason. Business is better in Texas. It's why all the tech and energy companies are there in mass.

 

[Nargg]

The term "socialist" is so badly used these days .... it would benefit everyone if you actually looked up the word and the examples given.

Best quote on the net today.

We live, just like every other 1st world country in the world, in a socio-democratic society. Yes, we all live and work with and around socialism, but only by democratic process, not by fascism. The latter of which the Right wants you to be afraid of. And you should be, as the Right seems to be leaning that way. All of our "first responders" are only here due to socialist practices, yet it's they who usually argue against such practices. Just shows how ignorant the USA is these days. So much for socialistic education, as the way we've done, it seems to have failed. Miserably.

 

[Endymio]

We all live and work with and around socialism...All of our "first responders" are only here due to socialist practices,...

Police, fire, and medical emergency services do not constitute socialism. It's ironic that the people who most advocate for socialism are those who understand it the least. While those who actually understand it (and those, like myself, who have lived under true socialism) fear it, and fear it with good cause.

 

[Uncle Al]

You love words so much. How about practice? Also, did you look up the word?

Yes I did and I have fought in many 3rd world countries against socialist, communist, and marxist reshemes ..... and where did you serve your country that has blessed you with such foolishness?

 

[scavengerspc]

Now, this is a twist. I always saw moving to Texas as more of a sentence than a choice.
Texas is one of the few states that can compete with Arkansas, my own state, in backwoods ignorance, anti religious choice, anti education and bigotry.
Truly a graveyard for constructive thinking and honest problem solving.