Elon Musk Says Tesla, SpaceX Manufactured In Costly California Just Because He Lived There Even As Rivals Boeing, Lockheed Martin Left: 'These Were Done In Spite Of, Not Because Of, The California Govt'

Billionaire CEO Elon Musk said on Tuesday that his companies, Tesla Inc. TSLA and SpaceX, started manufacturing in California despite the higher cost because he lived in the state.

What Happened: Tesla bought its Fremont Factory from Toyota Motor in 2010. It was previously owned by NUMMI, a joint venture between General Motors and Toyota which ended when GM entered bankruptcy in 2009.

“Tesla took over the derelict building, after it was stripped of anything useful, and it is now the highest production car factory in the Americas! That was simply because I lived in California,” Musk said on social media platform X.

The last automotive factory in California (NUMMI) shut down in early 2009.

Tesla took over the derelict building, after it was stripped of anything useful, and it is now the highest production car factory in the Americas!

That was simply because I lived in California.

— Elon Musk (@elonmusk) October 22, 2024

Likewise, Musk’s rocket manufacturing company SpaceX took over an abandoned aerospace building in LA County and started manufacturing rockets there because the company CEO lived there, Musk said.

“These were done in spite of, not because of, the California government. It would be far lower cost to manufacture in other states, which is why our competitors moved out of state,” Musk said, referring to rival launch provider United Launch Alliance, a joint venture between Boeing and Lockheed Martin, which produces rockets in Alabama.

These were done in spite of, not because of, the California government. It would be far lower cost to manufacture in other states, which is why our competitors moved out of state.

That was because I lived in California.

— Elon Musk (@elonmusk) October 22, 2024

Why It Matters: Musk has long been critical of California.

He moved Tesla's headquarters from California to Austin a few years ago citing disagreements with state policies, and subsequently, he also moved his company's state of incorporation to Texas.

In July, the billionaire said he would move the headquarters of his rocket manufacturing company SpaceX from Hawthorne in California to Starbase in Texas. He himself also relocated to Texas in 2021.

While California has a history of supporting Democratic candidates, Texas is a republican stronghold. Musk endorsed Republican presidential candidate Donald Trump in July and is now actively campaigning for the former President both online and offline.

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