As Tech Flees Silicon Valley, Rents Plunge

Elon Musk moved Tesla to Texas. He's not the only one who has had enough of California.

Musk Takes Jab at Silicon Valley

The Wall Street Journal reports Elon Musk Moves to Texas, Takes Jab at Silicon Valley.

During the spring, when Mr. Musk was sparring over coronavirus shelter-in-place orders that shut his factory near San Francisco, California Gov. Gavin Newsom told CNBC he was “not worried about Elon leaving any time soon” and the state was committed to the car maker’s success.

Tesla’s new car plant, its first U.S. factory outside Silicon Valley, is slated to open in Austin next year. Mr. Musk’s rocket company, Space Exploration Technologies Corp., or SpaceX, has operations in South Texas, leading Mr. Musk to spend a lot of time in the state. He filed paperwork in late October to move his personal foundation from California to Austin, according to local records.

Mr. Musk broadly criticized government regulations as stifling startup creation and favoring monopolies or duopolies. He called for the government to “just get out of the way” of innovators.

Other Companies Fleeing California

  •  Hewlett Packard Enterprise, whose origins trace back to the founding of Silicon Valley, said it planned to shift its headquarters to Texas.
  •  Palantir Technologies Inc., founded in the Bay Area in 2003, moved its headquarters to Denver this year. CEO Alex Karp, who co-founded the company, linked the departure to what he says is a view in Silicon Valley that is out of touch with American principles and societal needs.
  • Two other prominent conservative venture capitalists, Peter Thiel and Keith Rabois have cited what they see as Silicon Valley’s liberal politics as reasons to relocate. Mr. Rabois said he is headed to Miami. Mr. Thiel has moved to Los Angeles.

Rent Dives 35% in San Francisco

The rise of remote work in the wake of the COVID-19 pandemic is remaking one of America’s priciest places to live.

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