A few months ago, Elon Musk announced that he was selling all his homes. Now we know that he has moved to Texas. Originally, it is to be close to SpaceX’s Starship facility as well as Tesla’s Gigafactory, which is currently being built in Austin. However, leaving California, Musk makes big savings on taxes because Texas has no personal income tax. California has one of the highest rates of state income tax on the wealthiest resident. Musk lived in Los Angeles for 20 years, before moving to the Lone Star State. SpaceX is headquartered in the LA suburb of Hawthorne, and Tesla is headquartered in Palo Alto and the Bay Area in Fremont.
Musk also criticized California, saying that the Golden State has come to terms with its status as the largest economy in the United States and the fifth-largest economy in the world. This made California less desirable for the company. he said:
“If a team has been winning for a very long time, they are a little complacent, a little entitled, and then they don’t win the championship. California has been winning for a long time. And I think they are taking them a little. Gave a lot. “
Musk also moved his personal foundation from California to Texas. Kasturi is not the first tech entrepreneur to leave California – which has the highest housing costs in the country – for affordable spaces. The epidemic has forced many people to work from home conditions, leading them to conclude that they would be better off living in a much cheaper place.
Musk is flying back and forth between Los Angeles, San Francisco, Austin and Boca Cheeka, Texas on his personal Gulfstream G650 jet. He also makes frequent trips to China and Germany. SpaceX tested its rocket engine in McGregor, Texas. The company also has facilities for its massive starship spacecraft in Boca Chica, Texas. Tesla opened a factory in Shanghai last year and is building one in Berlin to expand its global reach.
Musk can afford to buy a house everywhere that houses Tesla and SpaceX. Tesla’s stock has been on an absolute tear this year, increasing its net worth from $ 23 billion in December 2019 to $ 150 billion in December 2020. He is officially the second wealthiest person on the planet behind Jeff Bezos.
When California shutdown orders closed Musk’s Tesla factory in Fremont, he defied orders from the Health Department, calling them fascists, and continued operating his plant. He filed a lawsuit against Alameda County in Northern California and threatened to take Tesla to Nevada or Texas. Ironically, Musk tested positive for COVID-19 last month, according to his revelation on Twitter.
Musk cannot severely dissect with California, noting that he has thousands of employees working for him in the state, as well as five teenage sons with his ex-wife Justin Musk. His ex and son live in California and they share custody.