Many businesses have been leaving states like California in an attempt to expand their companies and become more successful in other states. Recently, Elon Musk made the decision to relocate his company, SpaceX, to Austin, Texas. In a statement by Governor Greg Abbott, he proclaimed that Musk was drawn to Texas because of the expanded “freedom” it provides to companies when contrasted with California. Abbott expanded upon his statement to include that “Musk knows he has a better ability to do that in Texas with the freedoms that we offer him, with the low costs that we offer him, than he does in other places, like California.”
The decision to move the location of Space X is indicative of Elon Musk’s growing disdain for liberal governmental practices. He recently made the statement on his Twitter that he opposes extending unemployment stimulus packages. Thus, it is no surprise that Elon Musk is tired of the liberal agenda and hopes to grow Space X in an environment that more closely aligns with his values. This is reflected by an additional statement by Abbott which proclaims that “in his personal conversations with him, the tax benefits were helpful. But they were not really the incentive. The incentive was the opportunity of what he could achieve in Texas.”
Austin is a booming city with industries that are fast expanding. It is sometimes even referred to as the second Silicon Valley. However, despite the success of the economy, it lacks many middle tier positions. But Elon Musk is about to change that. The introduction of a factory for SpaceX will generate 5,000 middle tier jobs that Austin, TX desires. Not only will the move be helpful for Musk, but it is sure to help further develop Austin too.
President Donald Trump continued in the celebration of Elon Musk’s decision by tweeting: “Great job by @elonmusk in agreeing to build, in TEXAS, what is expected to be the largest auto plant anywhere in the world. He kept his word to me. Texas & @Tesla are big winners. MADE IN THE USA!” The President’s praise of the tech giant elucidates that he is a staunch supporter of big business and believes it is the backbone of the economy. From the President’s perspective, it is imperative that American grown industries are supported and continue to grow. So it should not surprise onlookers that he is such a vehement supporter of Elon Musk and his endeavors.
Overall, the decision to move his company to Texas was both politically and economically motivated for the business mogul Elon Musk. Only time will tell if this was the correct decision, but it is sufficient to say that he has gained support from the President and fellow entrepreneurs for his savvy decision. Hopefully both SpaceX and Austin benefit from the change in location.