California Governor Gavin Newsom frequently touted that his state is the pioneer in green technology and cutting-edge manufacturing. Now one of the most respected companies in those fields is shifting its headquarters. Tesla Inc.’s move to Texas from Silicon Valley marks the most recent blow for California. It joins companies including Hewlett Packard Enterprise Co., Oracle Corp. and Charles Schwab Corp.
The shift of firms born and bred in the state highlight many of its intractable issues, from high taxes and climate catastrophes to the nation’s most expensive housing costs, which threaten continued economic growth if corporate departures continue to multiply. Losing Tesla — a long-shot, clean-energy startup that revolutionized the auto industry and embodied much of the state’s economy — delivers a symbolic hit to the region.
“Tesla as a brand represents not just Motor City USA, it represents Silicon Valley and Hollywood,” said David McCuan, Chairman of Sonoma State University’s political science department. “Tesla is really a California-centric thing. But Elon Musk represents something larger than life, and that’s really Texas.”
