News
Tesla’s move to Texas labeled ‘betrayal’ of California, a way to escape paying taxes
Upon moving from Silicon Valley to Austin, Texas, critics and fans of Tesla and its CEO Elon Musk have mixed opinions about the move. Tesla enthusiasts might have seen it coming all along, especially after California politicians spewed profanities in the direction of the CEO, whose company has already provided an influx of employment opportunities to its new Texas market. However, without darkness, there would not be light, and there are plenty of people who are widely skeptical of Tesla’s recent decision to move its Headquarters to Austin from Fremont. However, the reasons for the move are being labeled as a betrayal of California and its workers, even though Tesla has no intentions to move any of its facilities out of the Golden State. Additionally, a commonly spread myth about all billionaires attempting to avoid paying taxes is also being thrown into the mix, further adding fuel to a fire that doesn’t really need to exist.
A recent article from the San Antonio Express-News indicates that Musk and Tesla have betrayed its California workers who have built the electric automaker from a longshot success story to the most highly-valued car company on Earth. Despite the reasoning from the article’s author, which misses the point of Tesla’s move, the narrative that Elon Musk is some sort of evil super villain sitting in a large chair with excessive lumbar support sitting in a billionaire’s palace scheming new reasons to get ahead while squishing the “average Joe” seems to appear out of nowhere. Even though Musk’s entire vision was to help avert a climate crisis and revolutionize the automotive industry, some people still seem to be convinced he is a man with horrible intentions. Still, the South African-born CEO was essentially driven out of California by its own people of authority. They asked, he granted, and now Musk is still being painted as the bad guy.
The assumption that Musk is forcing Tesla and its several manufacturing plants, logistics facilities, design studios out of California and shoving them to the Lone Star State is a common misconception amongst those who genuinely believe his mission is to make money and avoid paying his fair share of taxes. The thing is: If Musk was someone with this sort of agenda, would he have sold many of his residences? Would he be living part-time in a $50,000 home in Starbase, Texas to help with SpaceX projects? Would he be making portions of the company’s Fremont facility in Northern California permanent? Probably not.
Musk has responded to inquiries in the past about his taxes, stating that most of his net worth is tied up in Tesla stock. He pays taxes proportionate to his time in California and has never cashed a paycheck from Tesla, which is the state-required minimum payment. “It just ends up accumulating in a Tesla bank account somewhere,” he said to the New York Times several years ago.
On top of the other accusations made in the San Antonio Express-News piece, let’s not forget about Musk’s treatment from Lorena Gonzalez, a California State Assemblywoman who famously Tweeted “F*** Elon Musk” in May 2020. Musk evidently took the message as an invitation to test Tesla’s appreciation elsewhere, and Texas was more than willing to invite the electric automaker to establish its new base in Austin.
Message received
— Elon Musk (@elonmusk) May 11, 2020
Before Musk is labeled a traitor and Tesla a medium of betrayal to California and its workers, let’s not forget that Telsa’s presence in California isn’t disappearing. Let’s not forget all that Tesla has contributed to the economy and environment in California. And let’s not forget that Musk was encouraged by California’s politicians to seek another place for work.
Don’t hesitate to contact us with tips! Email us at tips@teslarati.com, or you can email me directly at joey@teslarati.com.
President Donald Trump unveiled an upgraded Boeing 747-8 at Joint Base Andrews on June 19, 2026, describing the Qatar-gifted aircraft as an interim Air Force One equipped with advanced communications systems, including Starlink, Elon Musk’s SpaceX satellite internet service.
The plane, valued at around $400 million and modified for presidential use, serves as a bridge until the delayed VC-25B replacements arrive. Trump highlighted its luxury features and new technology during remarks to service members.
Trump stated:
“We have communication equipment up there that nobody’s ever seen before. It’s the highest level and, uh, including Starlink. My friend Elon is going to be very happy, but, uh, Starlink and we have, uh, four or five different sets of double and triple communications like people haven’t seen.”
He added:
“And it represents what can happen with hard work, innovation, and aggressive timelines because we did this quickly and yet there’s never been communication like is on this plane.”
🚨 President Trump confirmed today that the new Air Force One is equipped with Starlink:
“We have communication equipment up there that nobody’s ever seen before, it’s the highest level and including Starlink…my friend Elon is going to be very happy.” pic.twitter.com/IhkDmtr5hL
— TESLARATI (@Teslarati) June 20, 2026
The aircraft features a redesigned red, white, and blue livery and has been outfitted with Starlink satellite connectivity alongside other secure systems.
Trump praised the plane’s uniqueness, calling it among the world’s most luxurious. The gift from Qatar and subsequent modifications have drawn attention, with the jet positioned as a solution for presidential travel. It is expected to support operations, including potential ceremonial roles such as Fourth of July flyovers.
The event marked the formal introduction of the converted jet, which will help maintain capabilities while the primary Air Force One fleet undergoes modernization. Defense observers note the inclusion of commercial satellite technology like Starlink as part of efforts to ensure resilient communications, crucial to keep the country running as the President is in the sky.
President Trump’s comments underscored appreciation for rapid upgrades and innovation in equipping the aircraft. The plane remains a U.S. government asset and is slated for eventual transfer related to presidential library purposes after its service.
Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
President Trump touts new Air Force One with Musk technology
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
