In a surprising revelation, former President Donald Trump claims that California Governor Gavin Newsom made no effort to stop billionaire Elon Musk from moving Tesla’s headquarters out of the state. During an interview with podcaster Patrick Bet-David, Trump recounted his conversation with Musk, where the tech mogul confirmed that Newsom never reached out to persuade him to keep the multi-billion-dollar company headquartered in California.
“I asked if Newsom called him, offered tax incentives, or even just asked to meet,” Trump said. “Musk told me he never received a call. I was amazed. You’re talking about thousands of workers and prestige.”
In December 2021, Tesla officially relocated its corporate headquarters from Palo Alto, California, to Austin, Texas, citing rising living costs in the Bay Area and growing tensions with state officials. Musk had long expressed frustration with California’s restrictive COVID-19 policies and labor regulations, which ultimately pushed him to relocate.
Bet-David expressed shock at Newsom’s inaction, saying, “The biggest entrepreneur in your state leaves, and you don’t call him?”
Despite the headquarters’ move, Tesla continues to maintain its engineering hub in Palo Alto, with Musk even holding a press conference alongside Newsom in February 2023 to emphasize the company’s ongoing presence in California. Yet, Musk’s further decision to relocate his other ventures, SpaceX and X (formerly Twitter), to Texas following disagreements over California’s gender identity laws, further highlights the rift between Musk and the state.
The failure to reach out to Musk has added another layer of scrutiny to Newsom’s handling of business relations, especially as high-profile companies continue to exit California.
