Many large corporations and businesses that first launched in California have now decided to move away from the Golden State. Many of these businesses have decided to move to Texas instead.
Elon Musk has already moved Tesla and Space X to the Lone Star State and is now threatening to move X there as well, or at the very least out of San Francisco. Despite his many reasons for this move, Musk isn’t completely done with California just yet.
Why Did Elon Musk Move Away From California?
Musk has been unhappy with various aspects of California over the last few years. However, a recent bill signed into law by Governor Gavin Newsom was the final straw for Musk.
The new law prohibits teachers from informing parents if their child decides to go by a gender that is different from the one they were assigned at birth. Musk believes the law attacks “families and companies,” and he doesn’t want his companies in a state that does this.
Sick of Dodging Drug Addicts
Musk has also stated that one of his reasons for moving X’s headquarters in San Francisco was because he became fed up with having to dodge “gangs of violent drug addicts” when on his way to work.
This is one of the things that led Musk to completely close down the San Francisco headquarters in favor of moving elsewhere, hoping he would no longer have to deal with it.
San Francisco Workers Will Be Moved
Whenever any company announces it will be closing down its offices or headquarters in one location, this instantly causes panic among the workers as to whether they will lose their jobs or if they will be moved elsewhere.
However, those working in the X San Francisco headquarters have been assured that they will be moved to offices in San Jose, with a new set of offices also set to be opened in Palo Alto.
The Right Decision for the Company
In an email that was sent out to staff by X Chief Executive Linda Yaccarino, she assured employees that while this decision will greatly impact them, it was the best decision for the company when looking to the future.
The new Palo Alto offices are set to focus on engineering and will be shared with xAI, which is Musk’s new artificial intelligence setup.
Tesla Sales Have Gone Down
Musk’s decision to move his businesses out of California might not have been his smartest move, as Tesla sales in the Golden State have decreased significantly since this decision.
EV sales in California increased in 2023, with 400,000 motorists deciding to buy an electric vehicle that year. However, 2024 has an entirely different outlook, or at least Tesla does. In the year’s second quarter, just 52,211 Teslas were purchased, meaning sales are down by 24%.
Elon Musk’s Political Stance
People believe Tesla sales are down due to how outspoken Musk has been on social media platforms regarding his political views and opinions, particularly on X.
While some people might agree with his opinions, many people living in California, where Tesla sales are down, don’t agree with Musk’s stance on many things. Some believe this is why sales haven’t been going as well this year.
‘Not a Big Surprise’
The news that X is moving its headquarters away from San Francisco sent shockwaves worldwide. However, journalist Bob O’Donnell has said he doesn’t find the news of this move that surprising.
O’Donnell believes that this move was expected, with it likely coming down to financial, economic and political factors for the move. However, he also believes that Musk thinks he is trying to make a big political statement that doesn’t need to be made in making this announcement.
X Has Been in San Francisco Since 2006
Musk’s decision to move X away from San Francisco is a significant change for the company. When X was first created in 2006 (back when it was known as Twitter), the headquarters were started in the city and have been there ever since.
Until Musk took over the company in 2022, the relationship between X and San Francisco had been good. Since then, this relationship has gone south. A lawsuit for unpaid rent was eventually dismissed, and an investigation was launched due to an allegation over the offices being where people were sleeping.
The Decline of San Francisco
Despite the political differences between Musk and California, there are more general issues with San Francisco that many business owners are sensing, which is why they want to get out of there as soon as possible.
There has been a rise in homeless people living in the city over the last few years, which has also led to a rise in crime rates. The rent has risen to the point that people can no longer afford it, and the pandemic meant that many people were no longer working in offices, causing the city to decline further.
X Employees Are Choosing to Leave
Musk’s takeover at X sparked a massive change for the company. While the name change from Twitter to X was the main one for most people, things were looking very chaotic behind the scenes.
As soon as he stepped through the doors, Musk began firing people left, right and center. However, he then decided to return some of those people when he realized he needed them. Despite these efforts, various employees voluntarily chose to leave, regardless of whether they were sacked or not.
Move or Lose Your Job
The issue many X employees face now is that they must choose whether to move with the company or lose their jobs. This is especially difficult for those who have spent many years working at the X headquarters in San Francisco.
While those living in San Francisco will face less than an hour’s commute to the offices in San Jose and Palo Alto, this is still a lot further than they are used to traveling and could cause more issues for the company than previously thought. However, only time will tell what they decide to do.
