It’s no secret that West Coast companies, and particularly manufacturers, are lured to Texas because we are open to business in ways that California and points northwest just aren’t.
The biggest fish to catch right now is a new Tesla factory and, from where we sit, Austin has put together a savory deal for the construction of Tesla’s next Gigafactory.
Travis County commissioners have approved a nearly $15 million incentive package to bring the electric car and truck company to Texas.
But those sweeteners, hinged on Tesla building a $1.1 billion factory, won’t be the reason founder Elon Musk makes a decision to build outside of his home state of California.
Musk has been anything but silent about his frustration with the regulatory environment there. And he has gone too far at times.
We wrote in March that he did the wrong thing in underplaying the coronavirus and venting at California health officials who were trying to keep employees safe. His outbursts on Twitter have long undermined the company he ingeniously created and steered into one of the most dynamic businesses in the country.
That’s a separate question, however, from the larger regulatory and taxing environment that frustrates so many business leaders in the Golden State.
We believe Tesla would be better off in Texas, and that Texas can provide the workforce to ensure that Tesla products are of the highest quality.
Musk, meanwhile, can operate in a place that has a history of working with business and entrepreneurs to help them succeed.
Tesla made an offer that looks good for Texas workers. The company has promised in writing to pay at least $15 an hour to food service and custodial workers. Higher-skilled jobs at the company are well-paying, and employees won’t see state income tax stripped from the top line.
In a perfect world — at least for us — Musk would be looking at the vast expanse of southern Dallas to build a factory and to tap a strong potential workforce.
But Austin is still Texas. And that will do for now.
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