Elon Musk Issues a Warning Regarding California
The wealthiest individual in the world established his enterprises in California and built connections with Democratic leaders in the state. However, he has now adopted a strongly anti-California stance.
The tech mogul built Tesla into an automotive powerhouse with the help of an East Bay manufacturing facility and SpaceX rockets launched from Southern California, benefiting from billions of dollars in state subsidies. However, despite cultivating relationships with Democratic leaders like Governor Gavin Newsom, Musk has increasingly distanced himself from the state that played a crucial role in his success.
California officials have also begun to distance themselves from Musk. Recently, members of the state’s coastal protection agency cited his support for former President Donald Trump and his “spewing and tweeting political falsehoods” when they rejected a Defense Department proposal for more SpaceX launches.
Musk’s criticisms of labor unions and his frequent complaints about California’s regulatory environment have shifted towards more extreme conservative views. He has adopted a narrative espousing anti-immigration sentiments and has denounced “woke” policies, including legislation aimed at protecting transgender youth.
Musk has aligned himself with a growing faction of Silicon Valley conservatives who criticize California, particularly San Francisco, and are pooling resources to help elect a Republican president.
“He’s never been a huge fan of California despite the fact Tesla, in particular, would not exist if it were not for California,” remarked Lenny Mendonca, who led California’s business development agency from 2019 to 2020. “I think he’s in the techno-libertarian Silicon Valley crowd — it’s not like he has some sophisticated political operation. It’s become a political crusade untethered from economics.”
In a sign of his ideological shift, Musk has used his platform in the weeks leading up to the election to promote a conservative agenda: Vote Republican, or risk America becoming California.
“The only thing stopping the California government and overbearing regulatory agencies from being even worse is that people and companies can move out of state,” Musk declared last month on X, the social media platform headquartered in San Francisco that he acquired last year. “If the machine behind the Kamala puppet wins this election, the whole country will be far worse than California is today.”
This shift has turned Musk into an outright adversary of the Democrats who dominate California’s political landscape, leaving state officials both perplexed and frustrated.
A former senior executive at one of Musk’s companies mentioned that many in the business community share his frustrations with California’s regulatory climate. However, they are concerned about Musk’s radical rightward turn.
“The Trump thing, that’s a different set of craziness,” said the former executive, who spoke on the condition of anonymity. “There’s a radicalization in the Twitterverse where a lot of really wild conspiracy theories, from Paul Pelosi to Jan. 6., have gotten him intrigued.”
A decade ago, Musk claimed he tried to stay out of politics as much as possible. He distanced himself from a tech-funded group lobbying for federal immigration reform, donating to candidates from both parties. His involvement in California politics at that time included backing both gubernatorial candidates in 2006—Republican Arnold Schwarzenegger and Democrat Steve Westly—along with donations to Newsom’s 2014 lieutenant governor campaign.
Their relationship developed further, with Newsom praising Musk publicly. “The idea that I'd be driving an electric car, Elon's car, is extraordinary,” Newsom noted in 2014. “What may be even more extraordinary still is, in 15 years, for $500,000, you may have a round-trip ticket not to the moon but to Mars because of that doggedness.”
As recently as 2017, Musk was raising funds for Democratic Senator Dianne Feinstein. According to longtime Feinstein aide Bill Carrick, “This was not an event where the Feinstein campaign was chasing him for money — this was something he initiated.”
A turning point for Musk came in 2018 when he donated to then-Speaker Kevin McCarthy, a significant Republican figure and ally of Trump. This marked a shift in his political engagement, and thereafter, Tesla and SpaceX increased lobbying efforts in Sacramento on various issues, including clean vehicle rebates and tax incentives.
Musk’s spending on lobbying spiked significantly during the 2017-2018 legislative session as he fought back against claims of anti-union practices, further altering his relationship with the state government.
Despite his penchant for being hands-on at the Fremont plant, Musk typically kept Sacramento decision-making at a distance, opting to delegate those responsibilities. According to a lobbyist who worked closely with his companies, “He didn’t really care for government affairs.”
However, in 2020, Musk’s public engagement escalated when he publicly criticized California’s COVID-19 restrictions. He initially attempted to provide ventilators but quickly turned hostile, calling shutdown orders “fascist” and ultimately announcing plans to move Tesla’s headquarters to Texas.
This bold declaration drew ire from many Democrats. Former Assemblymember Lorena Gonzalez famously tweeted “f*ck Elon Musk.” She subsequently remarked that Musk’s conservative shift was predictable. “Obviously he doesn’t feel the pressure to be pro anything progressive like he used to,” she said.
Although Newsom managed to help resolve the immediate tensions, Musk’s relationship with California continued to deteriorate. In late 2020, he sold his Los Angeles properties and relocated to Texas. Musk criticized California’s regulatory environment, describing it as having shifted from “the land of opportunity” to “the land of sort of overregulation, overlitigation, overtaxation.”
As time progressed, Musk fully embraced far-right rhetoric, frequently promoting anti-California sentiments. He has condemned state legislation aimed at expanding benefits for undocumented immigrants and has spoken out against what he calls the “woke mind virus” infiltrating key industries.
The final break came when Musk reacted to a bill Newsom signed that prevented schools from disclosing students' gender identities to parents. Musk called it an “absolute showstopper for me regarding California” and threatened to relocate SpaceX to Texas.
In response to Musk’s escalating rhetoric, Newsom has dismissed the idea of Musk relocating SpaceX as impractical and criticized Musk’s deference to Trump. The two clashed earlier this year after Musk shared a doctored video of Vice President Kamala Harris, prompting Newsom to vow to outlaw such political “deepfakes.” After doing so, Musk warned that the election of Harris could lead to censorship.
“Mr. Musk missed the punchline,” Newsom replied.
While Newsom has supported SpaceX’s expansion plans at Vandenberg Space Force Base, the California Coastal Commission voted against them, citing concerns over Musk’s conduct and political actions.
“We’re dealing with a company, the head of which has aggressively injected himself into the presidential race and he’s managed a company in a way ... that I find to be very disturbing,” said commission Chair Caryl Hart.
Now, as California Democrats unify behind Harris and Musk attempts to oppose her, officials who have engaged with Musk are left to grapple with his ideological transformation.
Former state Senator Bob Wieckowski reflected on how the arrival of the Tesla plant once symbolized hope yet now feels perplexed by Musk’s current stance. “Supporting the Brazilian wing or the American right wing and sharing misinformation — I don't get it,” he stated. “I didn't see that in 2015 or 2016.”
Debra Kahn contributed to this report.
Sophie Wagner for TROIB News