Elon Musk Relocation Threats

Tesla and SpaceX Chief Executive Officer Elon Musk

(The Center Square) – The day after Tesla’s CEO Elon Musk said he was considering leaving California for Texas or Nevada, Texas Gov. Greg Abbott said he was on the phone with the billionaire.

“I’ve had the opportunity to talk to Elon Musk and he’s genuinely interested in Texas and genuinely frustrated with California,” Abbott told a CBS affiliate in Wichita Falls, Texas. “We’ve just got to wait and see how things play out.”

On May 11, Musk announced, “Tesla is restarting production today against Alameda County [California] rules. I will be on the line with everyone else. If anyone is arrested, I ask that it only be me.”

Tesla’s Freemont, Calif., plant is manufacturing 200 Model Y crossover and Model 3 fully electric vehicles.

Alameda County officials knew they had a lot to lose with the state’s last car manufacturer potentially leaving the region. Within a few days of Musk’s call with Abbott, the Alameda County Public Health Department tweeted that Tesla could perform more than basic operations, and begin vehicle production May 18, after the county signs off on the company’s safety and prevention plans.

On Monday, Ford, General Motors and Fiat Chrysler Automobiles began production at most of their U.S. plants, after manufacturing of some auto parts had already begun, Forbes reports.

Musk’s businesses already based in Nevada and Texas include Tesla’s Gigafactory in northern Nevada, and SpaceX based in Boca Chica, at the southern-most point of Texas along the U.S.-Mexican border.

Abbott said that companies other than Tesla were considering relocating to Texas.

“Texas was the top destination for corporate moves in 2019," Abbott tweeted. "That pace continues in 2020 even during #COVID19. There will be many more announcements soon. And many more good paying jobs.”

According to an Allied Van Lines report, Texas was the number one destination for corporate moves in 2019. Florida was the top moving destination in 2019 for consumers.

Allied’s annual Magnet States Report was based on an analysis of consumer and corporate moves that took place between Jan. 1 and Dec. 5, 2019.

In Texas, the Houston area was the number one destination for corporate moves; Austin was the top location for consumers.

“Texas, with its business-friendly climate, has ranked as the top move destination for Allied corporate customers for the last six years,” the report states. “The high influx of corporations moving to Texas makes it a highly desirable destination for top talent.”

Allied Van Lines, a large national moving company, reported that it moved nearly 3 billion pounds of household goods and personal items over the last six years.

Despite a mass exodus occurring from California and Illinois every year, California was second, and Illinois fourth, on the list of corporate move destinations for 2019.

Texas was second on Forbes’ “2019 Best States for Business” ranking.

Texas also ranks first out of all 50 states for attracting California companies every year for 12 years straight – according to a report by Spectrum Location Solutions.