The Real Reason Behind Elon Musk Threatening To Move Tesla HQ To Texas

"Arch Duke Maxyenko, Shit Talk Extraordinaire" (arch-duke-maxyenko)
05/15/2020 at 19:11 • Filed to: Tesla

It’s not because of the coronavirus and his bitching about sending people back to work.

It’s much.

Much.

Simpler than that.

It’s all because of:

California’s corporate tax rate is 8.840%, whereas Texas’ is only 1%. Tesla just doesn’t want to pay taxes. Same reason why Toyota moved there. I wonder if the die-hard Tesla fans will even notice...

DISCUSSION (37)

PatBateman > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 19:16

Tax policies! Yeah, bitch!

Sovande > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 19:18

I would think they would say "hey, he's saving 7.5% in taxes, that's a pretty good reason to move." What are we supposed to be mad about in this instance?

RiceRocketeer Extraordinaire > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 19:19

why did he even bother setting up in California then

Chariotoflove > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 19:21

I think you hit at least one huge nail on the head. Texas is really tax friendly to corporate relocation. Always has been. And quality of life is high.

Highlander-Datsuns are Forever > RiceRocketeer Extraordinaire
05/15/2020 at 19:22

Density of taquerias.

Chariotoflove > RiceRocketeer Extraordinaire
05/15/2020 at 19:22

That’s where most of the ideas and capitol originate in this gig economy. There and the northeast coast. Texas has been trying to find ways to lure VCs for years, to get the chances of more companies starting here higher.

Arch Duke Maxyenko, Shit Talk Extraordinaire > Sovande
05/15/2020 at 19:26

It’s because Tesla is supposed to be the anti corporation, the do good for the economy and the environment, the not an automotive company , but a tech company disrupter. Yet in the end, Elon still worships at the church of the All Mighty Dollar, just like all the rest.

Rusty Vandura - www.tinyurl.com/keepoppo > RiceRocketeer Extraordinaire
05/15/2020 at 19:28

Appeal to smug liberals. Sell cars. In Texas, though, he cannot sell directly to customers, but is required to use dealerships.

Textured Soy Protein > Chariotoflove
05/15/2020 at 19:29

Sometimes I think about living in Austin, but I’ve already done the blue city in a red state thing when I lived in Madison.

I’m not in any rush to return to that situation.

For Sweden > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 19:30

He’s moving to Texas for tax reasons

He’s moving to Austin because he doesn’t want to leave C alifornia

Arch Duke Maxyenko, Shit Talk Extraordinaire > PatBateman
05/15/2020 at 19:31

And yet he openly backed Andrew Yang, who wanted to increase the corporate tax to fund the UBI...

The Snowman > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 19:37

The icing on the cake is that the low corporate tax is passed on to employees with one of the highest property taxes in the country.

ttyymmnn > Rusty Vandura - www.tinyurl.com/keepoppo
05/15/2020 at 19:37

AFAIK, you cannot buy a Tesla in Texas. You have to buy it from another state and have it delivered. There are, however, Tesla repair facilities.

ttyymmnn > For Sweden
05/15/2020 at 19:38

California is already here.

Sovande > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 19:43

It's still a business. Getting bent over for 8.8% when you could only pay 1% down the road is just common sense. He's running a business.

ITA97, now with more Jag @ opposite-lock.com > The Snowman
05/15/2020 at 19:43

This. I lived in Texas. It’s a high tax, high public service state, just one that shifts most of the business tax burden onto employees instead through sky-high property taxes and big time sales tax.

415s30 W123TSXWaggoIIIIIIo ( •_•))°) > ttyymmnn
05/15/2020 at 19:44

And Boulder, and Portland. In Hawaii we get annoying retirees from everywhere.

Arch Duke Maxyenko, Shit Talk Extraordinaire > Sovande
05/15/2020 at 19:45

Don’t tell the Tesla fanbois

Mercedes Streeter > RiceRocketeer Extraordinaire
05/15/2020 at 19:49

From what I have seen people claim, it’s because at the time Tesla first got up and running, all the best talent was out there. Now you can find the same talent in cheaper states.

How true is that? Idk, I’m neither Californian nor Texan. But I do know tech down south has been rapidly growing.

fintail > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 20:06

Sacrifice for thee, not for me - ethos of the contrarian libertarian dbag type.

PatBateman > Mercedes Streeter
05/15/2020 at 20:18

Austin has been tech-centric for the past 30 years. Dell, IBM, Intel, and AMD are just a few of the companies that have a huge presence in the town.

You can trip over a well-qualified software designer asking for a job walking down the street the same as you can a bump in the sidewalk.

PatBateman > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 20:19

You expect him to make sense?

ClassicDatsunDebate > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 20:20

Please post the best Grey comments you get.

DipodomysDeserti > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 20:23

Wasn’t this the same tax structure that existed prior to him building the current plant?

getFuckedHerb > The Snowman
05/15/2020 at 20:36

Highest Property taxes with high use and sales taxes and no income tax.

Sovande > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 20:38

They know it’s a business as soon as they stroke that first check.

BigBlock440 > RiceRocketeer Extraordinaire
05/15/2020 at 20:46

It was a pre-built car factory, also tech. Now they’re an established company with multiple factories, they can do thing like move.

BigBlock440 > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 20:49

He could move to Texas, have his corporate taxes quadruple to pay for ubi, and still pay less than in California.

BigBlock440 > DipodomysDeserti
05/15/2020 at 20:51

He didn’t build the current plant, GM and Toyota did. Unless you mean the Chinese one that’s not going to be abandoned, or the Nevada battery plant.

jimz > ITA97, now with more Jag @ opposite-lock.com
05/15/2020 at 21:05

yep. those “low tax” states get their money one way or another, usually by calling it something other than “tax.” “Fee” usually works.

Thisismydisplayname > Rusty Vandura - www.tinyurl.com/keepoppo
05/15/2020 at 22:10

For now that is, wouldn’t doubt. Him trying to leverage the move with friendly legislation to get the direct sales allowed.

Mercedes Streeter > PatBateman
05/15/2020 at 22:17

Well, that n ixes that idea!

Tristan > 415s30 W123TSXWaggoIIIIIIo ( •_•))°)
05/15/2020 at 22:52

You forgot the entire Seattle area . And Bend. A nd Eugene. Let's just call it the entire West coast.

Chariotoflove > Textured Soy Protein
05/15/2020 at 23:07

I suspect it’s a lot like that. Better to stay amongst your people. :p

superdave847 > Arch Duke Maxyenko, Shit Talk Extraordinaire
05/15/2020 at 23:08

There is an entire industry that works to convince California companies to move to Nevada, Oklahoma, and Texas.

Which kinda proves Californias point—high taxes, used to invest in human capital, created one of the best public university systems in the country (UCLA, Cal Berkeley, UC Davis, Cal Poly, etc.) hence the innovation and creativity that starts lots of companies in California.

Then states with low taxes poach those companies.

davesaddiction @ opposite-lock.com > superdave847
05/16/2020 at 01:47

I wonder what percentage of Tesla employees would be unwilling to make the move.

superdave847 > davesaddiction @ opposite-lock.com
05/16/2020 at 07:28

Personally, I would enjoy living in Austin, but it’s not nearly as beautiful as the Bay Area.