seniorspectrumnewspaper – Elon Musk may have had a public falling out with California. But his companies are still deeply connected to the state. Neuralink, Musk’s brain implant company, recently leased a 144,209-square-foot, five-story building in South San Francisco, joining a growing biotech hub in the area. This comes as a surprise to many, given Musk’s previous statements criticizing the state’s high taxes and cost of living.
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In addition to Neuralink, Musk’s xAI is also expanding in California. The AI startup, which moved into an office once occupied by OpenAI, is reportedly looking for a 250,000-square-foot facility. The company has more than 250 open job listings in the Bay Area. Underscoring Musk’s continued investment in the region’s talent pool despite his vocal criticism of its political climate.
Tesla and SpaceX, two of Musk’s other major ventures, are also continuing to expand in California. Tesla has over 1,300 job openings in the state. While SpaceX has more open roles at its Hawthorne location than at its new Texas headquarters. This suggests that despite Musk’s relocation of his personal headquarters to Texas. The companies he leads still rely heavily on California for talent, research, and innovation.
Musk’s Complex Relationship with California
Musk’s relationship with California became strained during the COVID-19 pandemic when the state required Tesla to shut down its Fremont factory in 2020. Frustrated by the decision, Musk publicly criticized the state’s handling of the pandemic and eventually moved Tesla’s headquarters to Texas in 2021. He cited the high cost of living and taxes in California as the main reasons for the move, noting that Texas offered a more affordable and business-friendly environment.
Musk’s political stance has also evolved over the years. He became more publicly involved in right-wing politics, funding Republican campaigns and even spending $20 million on a Wisconsin race. His relationship with government officials soured further, especially after he clashed with President Biden over a budget bill. Musk has since suggested starting his own political party and voiced his dissatisfaction with California’s progressive policies, particularly its gender identity law. This policy, according to Musk, was the “last straw” in his decision to relocate SpaceX’s headquarters to Texas.
In addition to his political frustrations, Musk has been openly critical of California Governor Gavin Newsom. The feud escalated after Musk shared an AI-generated video of Vice President Kamala Harris, which Newsom condemned. Musk’s comments on the matter were pointed and crude, further highlighting the strained relationship between the tech billionaire and California’s leadership.
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Despite these conflicts, Musk’s investments in California companies like Neuralink, xAI, and Tesla suggest that the state still plays a crucial role in his broader business strategy. While Musk has voiced his dissatisfaction with California’s policies and costs, his companies continue to thrive in the Bay Area, benefiting from the state’s talent, infrastructure, and innovation ecosystem. It seems that, for all his criticisms, Musk cannot fully shake off his ties to California.
