Newsom’s exclusion of Tesla from the EV program reflects deeper issues driving businesses and citizens out of California, while a growing red wave suggests the state’s political tides are turning
California Governor Gavin Newsom has unveiled a reboot of the state’s electric vehicle (EV) adoption program. Surprisingly, the initiative excludes Tesla, a company synonymous with EV innovation and whose headquarters famously left the Golden State for Texas in 2021. Tesla’s production facility however is still in California, making it the only EV manufacturer producing their cars in California. This decision is the latest in a series of policies under Newsom that critics argue are driving corporations and residents out of a state that once boasted the fifth-largest economy in the world.
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Musk responded on X, writing, “Even though Tesla is the only company who manufactures their EVs in California! This is insane.”
Tumultuous Policies To Blame
Newsom’s tenure has been marked by tumultuous policies that many blame for the state’s economic and demographic challenges, including skyrocketing housing costs, high taxes, and burdensome regulations. His leadership even faced a high-profile recall attempt in 2021, underscoring the dissatisfaction of many Californians.
A growing number of major corporations have joined the exodus, leaving behind nearly a trillion dollars in revenue. Below is a list of some of the most notable departures:
- Tesla
- Oracle
- Charles Schwab Corp.
- Palantir Technologies
- Hewlett Packard Enterprise (HPE)
- Chevron
- Symantec
- Snowflake
- AECOM
- Pabst Brewing Company
- Neutrogena (Johnson & Johnson)
- Skillz
- FICO
- Dropbox
- Lucas Oil
- McAfee
- X (formerly Twitter)
- SpaceX
This exodus reflects a broader frustration among businesses and individuals who are seeking more stable, business-friendly environments. The ripple effects of these departures are reshaping California’s economy and eroding its tax base, as corporations take jobs and innovation elsewhere.
A Pattern of Decline
The mass corporate flight from California coincides with a steady stream of residents leaving the state. U.S. Census data confirms that California’s population is shrinking, and economic studies highlight the impact of businesses relocating their operations. Many attribute the decline to what they see as Newsom’s “tyrannical” governance, characterized by policies that burden rather than bolster growth.
Tesla’s Exclusion: A Symbol of Discontent
Tesla’s exclusion from the state’s EV program feels particularly ironic, as the company once symbolized California’s leadership in clean energy innovation. Under CEO Elon Musk, Tesla has not only relocated its headquarters but has also been outspoken in its criticism of California’s regulatory environment.
The Warning in History
The decline in California’s fortunes under Newsom echoes the sentiment of a popular quote often attributed to G. Michael Hopf:
“Hard times create strong men, strong men create good times, good times create weak men, and weak men create hard times.”
The question now is whether California will muster the leadership necessary to reverse this trajectory or if the state’s best days are behind it.
A Growing Red Wave in California
Amidst the economic and political turbulence, a surprising trend is emerging: a significant red wave in California. In the most recent election, over 40% of voters cast their ballots for Republican candidates, signaling a seismic shift in the state’s political landscape. Analysts point to growing dissatisfaction with one-party governance, economic mismanagement, and rising crime as reasons for the surge in Republican support.
Experts believe this trend is set to grow as more Californians seek alternatives to current leadership, potentially reshaping the future of a state long dominated by progressive policies. The red wave could mark a turning point, paving the way for a more balanced and competitive political climate.
As Newsom faces mounting challenges, the changing political tide adds another layer of complexity to his governance and California’s uncertain path forward.
