Exclusive | The staggering amount California lost when Elon Musk left the state

When the world’s richest man left California — taking his multitrillion electric car and space companies with him — the Golden State lost out on billions of dollars in economic benefits.Elon Musk’s SpaceX launched its record-breaking IPO on Friday, making him the world’s first trillionaire while enriching many employees and investors.Musk didn’t travel to the New York Stock Exchange for the ceremonial bell ringing, instead choosing to celebrate at his company’s headquarters in South Texas — surrounded by some of the estimated 4,000 millionaires he created through the public offering.It was a symbolic move for Musk, who’s relocation of SpaceX and Tesla to the Lone Star State cost California untold billions, said Dr.Wayne Winegarden of the Pacific Research Institute.

“The bottom line is this is exhibit A of why you don’t want to chase away businesses,” he told The California Post.“Obviously, businesses will move [because of] different advantages and things of that nature.But when you have a punitive tax system, when you have a punitive energy cost, you chase away companies, and entrepreneurial and potential income gains go with it,” Winegarden added.

“There are all sorts of prosperity implications from that.”Musk left the state personally in 2020 to oversee Tesla’s new headquarters being built in Texas.Tesla officially relocated to Austin in 2021.The tech tycoon said at the time that he left California because it had become too “complacent” for businesspeople.“They do tend to get a little complacent, a little entitled, and then they don’t win the championship anymore,” he said.Gov.

Gavin Newsom had expressed confidence that Musk would stay at the start of the COVID-19 pandemic, saying he was “not worried about Elon leaving any time soon.”Musk did walk away — and Texas welcomed him with open arms.“Texas loves jobs & we’re very glad to have you as a Texan,” Sen.Ted Cruz wrote in December 2020.In 2024, Musk...