OAKLAND — Gov. Gavin Newsom on Friday attempted to put a brave face on the jolt to California’s economy and prestige in the wake of Tesla’s decision to shift its headquarters from Silicon Valley to Texas.
Tesla’s chief executive officer, Elon Musk, announced a decision this week to move the company’s headquarters from Palo Alto to Texas, a defection that helps solidify the narrative that California maintains a hostile business climate.
“California is the fastest-growing economic jurisdiction in the world over the last five years,” Gov. Newsom said after a bill-signing event in downtown Oakland on Friday.
Newsom touted the 21% growth in California’s gross domestic product, or GDP, over the past five years. The governor noted that this pace of economic expansion outstrips the Texas performance of 12% state GDP growth over the same time frame.
“I have known Elon Musk for 20 years,” Newsom said. “I appreciate his innovation and entrepreneurial spirit and pushing out the boundaries. He has an extraordinary talent.”
The governor declared that California has bolstered Tesla financially over the years.
“California has provided hundreds of millions of dollars in tax subsidies to Tesla,” Newsom said.
The state continues to invest in electric vehicles and green car technology, the governor said.
“I have reverence and deep respect for that individual,” Newsom said, referring to Musk. “I also have deep reverence for the state and what we have done to support those investments. We will continue to have no peers in terms of economic growth.”
The governor predicted ongoing growth for the California economy — even though California badly lags the nation in terms of recovering all of the jobs that were lost due to the start of business shutdowns to combat the coronavirus.
“Our best days are in front of us,” Newsom said.