Elon Musk Warns California That Moving HQ From State Is Still On The Table

With California being so business unfriendly, there is no reason for a company like Tesla to put up with the bitch in Alameda County or the asshole in Sacramento. Elon should sue both for lost revenue.

I think that is the point. Businesses exist to make money. When you drain the life out of them with high taxes, and excessive regulation they will move on.

Being in "California" no longer has the luster that it once did.

Hence my trips to New Mexico.

Hmmm..New Mexico? Expanding the automotive retailing empire or moving there all together?

Santa Fe is one of the most beautiful places on earth.

A friend of mine who is also in the dealership and car flipping world moved out of California to Tucumcari New Mexico. He was brought up in the business and I met him in Palm Springs at a car event when I was 17. He became successful in the business and then inherited very well about 10 years ago and sold his car interests in California bit by bit. He now owns dealerships in New Mexico and Texas as well as body shops. Body shops are extremely lucrative and he was the one who got me into buying mom-and-pop body shops and putting them under one umbrella privately. We've gone car hunting through Arizona, New Mexico, and Texas. He invited me to go in with him on a dealership and then another, so I did. He's kicked some of his flip business my way so a transporter drive to New Mexico and back became semi-regular. He's also found me a nice amount of project cars. After doing the drive for a while, I then learned that if I were to incorporate in New Mexico and have that company buy my holdings in California, a loophole in the California tax code means I pay less tax for my interests in California. Game on. Thus, I trek to New Mexico every 4-6 weeks and turn on the light in my store front. My family happens to love the desert, so a move to New Mexico is not unthinkable. Our get away "Casa del Infierno" is down in Indio and then we have a tract home in Salton City for when we want to take the toys out, but our toys are locked down in Indio away from the meth heads. During the COVID hoax, my wife--who has worked remotely now for 6 months--has taken the boys and gone down to Indio where my dad and his husband live. My two dads love playing school so even when the asshole governor told kids they didn't have to do any more school work, my two dads doubled down on education. My dad's husband--retired--usually rides back here with them and makes sure schooling continues. He's been teaching them Spanish all summer and the boys grudgingly put up with it. My wife will go down to Indio for two weeks here and two weeks there because she loves the area. The house is her dream house and everything in it is her design. I do the circle of home to Newport Beach to Indio to home whenever they are down there because I can do about 50% of my work remotely. Tucumcari probably isn't where we would land if we move to New Mexico, but I love New Mexico.

Liberal Musk acts more like a Republican when it comes to business and employment,consumer choice, economy and sales tax revenue are better for it.

He got both with Austin, a Republican state and with a Democratic capital.

Low quality companies are welcome to leave

Absolutely, they will simply raise your taxes to compensate

dlin you are so stupid it hurts. What exactly is a "low-quality" company? What are your parameters? Tesla sure as hell isn't low quality as it relates to the California economy. If anything, California should be kissing Tesla's ass at this point.

CA raises tax anyway, even with Apple here

And here comes that low quality Korean car advocate

So is Apple a low quality company too?

Musk is just shopping for tax breaks. But it's hard for me to imagine every Tesla HQ employee moving out of state, especially if their silicon valley salaries will decrease.

Look no further than Toyota. A large number of employees moved.

I was curious about the take rate of those Toyota employees moving from California to Texas. Jim Lentz said 70% of the employees moved to Texas. That's a HUGE take rate.

Companies SHOULD shop for tax breaks. Tesla won't need to do pay cuts. Thus, moving out of Palo Alto for Texas where are basic house might be $200K as opposed to $2 million dollars will feel to employees as a massive pay increase.

These tax breaks are often not good for tax payers, ask Boston about GE (although GE is paying some of that back) or Foxconn and Wisconsin or many others where the local taxpayers are left holding the bag when things don’t work out. Companies and states should compete for business on a level playing field and not be allowed to gamble with taxpayers money.