'Our regulatory environment helped create that company and grow that company,' Gov. Newsom said after Elon Musk said Tesla would move its headquarters from Palo Alto to Austin.
While regulators investigate a spate of Teslas steering themselves into parked vehicles, Tesla owners have been reporting faulty collision-avoidance systems.But Newsom, a prominent Democrat who often contrasts his state’s actions with those of Republican-led Texas, said California’s business climate remains strong, particularly for clean-energy companies. He boasted that the state leads the nation in factory jobs, venture capital investments and new companies going public.
And he said California deserved some of the credit for Tesla’s success, giving the company “hundreds of millions of dollars” in tax breaks and adopting policies to encourage electric cars. California has for years required automakers to sell zero-emission vehicles in the state or buy credits from companies that do, and it remains the country’s largest electric vehicle market.
“Our regulatory environment helped create that company and grow that company,” Newsom said. “I have reverence and deep respect for that individual. But I also have deep reverence and respect for this state and what we’ve done.” Newsom was asked whether a tweet sent last year from state lawmaker Lorena Gonzalez in which she invoked Musk’s name with an expletive was appropriate and contributed to his decision to move to Texas. Musk tweeted “exactly” on Friday when the comments were pointed out in a blog about the move.
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