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Musk moves to Texas to pursue Tesla and SpaceX projects

(Bloomberg) – Elon Musk has moved to Texas to focus on two big priorities for his companies: SpaceX’s new space vehicle and Tesla Inc.’s Gigafactory, currently under construction in Austin. There are also potentially huge tax implications for Musk. , who recently became the second richest person in the world. Texas has no personal income tax, while California levies the highest in the country on its wealthiest residents. “I moved to Texas,” Musk said Tuesday, in a live interview with the Wall Street Journal. Musk did not specify where or say if he bought a property. Musk, 49, has lived in the Los Angeles area, where SpaceX is based, for two decades. Tesla is based in Palo Alto, California, and its main electric car manufacturing plant is on San Francisco Bay in Fremont. Musk criticized California in the interview, saying it had become complacent with its status as an economic giant. and less attractive to him. “If a team has been winning for too long, they tend to be a little complacent, a little overgrown, and then they don’t win the championship anymore,” he said. “California has been winning for a long time. And I think they’re taking it a bit for granted. ”Musk moved his personal foundation to Austin from California, Bloomberg reported Monday. ‘Massive Influence’ The Bay Area, home to some of the world’s largest technology companies, including Apple Inc. and Google’s parent Alphabet Inc. have been affected by the pandemic. Many tech employees have been required to work from home, and that has spurred some to relocate. Social media giants like Facebook Inc. have also faced criticism for allegedly thwarting competition. “Silicon Valley, or the Bay Area, has too much influence in the world, in my opinion,” Musk said. “The Bay Area has a huge influence on the world.” SpaceX tests rocket engines in McGregor, Texas, west of Waco, and is building its massive new Starship spacecraft in Boca Chica, Texas, south of Brownsville. , near the border with Mexico. Tesla is expanding its global operations with a new factory in Shanghai that opened last year and another in Berlin. Musk, who has always been highly mobile, frequently flies between California, Austin and Boca Chica in his private Gulfstream G650 jet. along with frequent international trips to Berlin and China.As Tesla shares have exploded this year, Musk’s personal wealth has risen to more than $ 155 billion, making him the second-richest person in the world after from Inc. founder Jeff Bezos. Shares in the company rose 1.3% to close at $ 649.88 on Tuesday. Debt Retirement Musk’s long-standing relationship with California soured this spring during the first wave of the coronavirus. When Alameda County shutdown orders halted production at Tesla’s Fremont plant, Musk challenged local health officials by closing late and reopening early, calling the rules “fascist” in an earnings call. He briefly sued. to the county and threatened to move Tesla’s headquarters to Texas or Nevada. Musk revealed on Twitter that he had covid-19 last month, but Musk’s relationship with California is likely to endure. He has five teenage children with his ex-wife, Justine Musk, and the two have joint custody.Tesla announced plans early Tuesday to raise $ 5 billion in additional capital, which Musk said will go towards retiring debt and boosting growing cash reserves. “Debt retirement and having a little more of a war chest,” Musk said. “At the end of the day, what is money? Money is an entry in a database. ”Tesla nearly doubled its cash and equivalents to $ 14.5 billion as of September 30, up from $ 5.3 billion a year earlier. Its total debt, excluding financing for vehicles and energy products, reached $ 8 billion in the third quarter, unchanged from the prior year.Original Note: Musk Relocates to Texas, Criticizes ‘Complacent’ California (2) For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source. © 2020 Bloomberg LP

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