Gavin Newsom and Elon Musk’s Troubled Relationship
In February 2023, California Governor Gavin Newsom and Elon Musk appeared together at a press conference, highlighting Tesla’s new AI innovation lab in Palo Alto. They shared a light-hearted moment when Musk joked about the $100,000 Newsom invested in a Tesla Roadster—Tesla’s very first electric vehicle—back in 2007. Musk remarked, “It was a lot of money in 2007,” to which Newsom quipped, “That’s still a lot of money. Trust me, brother, you don’t see my paycheck.”
That moment marked a high point in their relationship, but since then, things have taken a turn for the worse.
On Wednesday, Newsom appeared on “The Axios Show” and referred to Musk, who heads Tesla and SpaceX, as “the Thomas Edison of this generation,” yet also labeled him “one of the great disappointments” of our time, remarking, “It breaks my heart.” The discussion, while ostensibly focused on electric vehicles, reflected the complexity of their unusual friendship in California’s political landscape.
Newsom, 58, is a fourth-generation California politician who has held the governorship since 2019 and is married to documentary filmmaker Jennifer Siebel Newsom. He is also a father of four and a leading contender for the 2028 Democratic presidential nomination, outpacing early rivals like Kamala Harris and Pete Buttigieg.
Meanwhile, Musk, 54, originally from South Africa, is currently the richest person on the planet, with a staggering net worth of about $839 billion. His ambitions extend beyond financial gain; he aims to establish human colonies on Mars.
Edward Niedermayer, who wrote “Ludicrous: The Unvarnished Story of Tesla Motors,” has closely observed the dynamics of their relationship. He argues that California’s interactions with Tesla showcase a state bending over backward for a company that often doesn’t reciprocate. “Tesla has been one of California’s largest manufacturers for some time, so Newsom has had a strong incentive to foster a good relationship with Musk,” he explained.
Niedermayer also pointed out that Tesla served as a “flagship” for California, enhancing the state’s reputation in high-tech industries.
Yet, the state’s generosity has limits. Tesla has faced scrutiny over its practices, including violations related to air quality, especially given its proximity to schools. State regulators have often provided Tesla with favorable deals.
Initially, their relationship was mutually beneficial. California needed Musk’s company as a model of how environmental regulations and innovative technology could coexist. Musk, in return, benefited from California’s resources and market. The two parties complemented each other well—at least until recently.
In March 2020, Musk announced that Tesla would donate 1,000 ventilators to California amid the COVID-19 crisis. Later, when Newsom laid out plans to resume manufacturing, Musk responded positively, showing a supportive side during those early months of the pandemic.
The goodwill during the Palo Alto press conference now feels distant. Newsom noted that California provided Tesla with $3.2 billion in subsidies over two decades, a sum he considered worthwhile.
However, it’s essential to recognize that the Tesla headquarters celebrated at that event was actually its second; Musk relocated the original from California to Texas, a move triggered partly by disagreements over pandemic restrictions. This shift marked a significant deterioration in their relationship.
Niedermayer indicates that the divide began to widen well before now. Musk’s purchase of Twitter and his shifts toward more conservative political stances contributed to the rift. By 2024, Tesla had begun reducing its workforce in California, and Musk openly criticized the state.
Previously, Musk had been a traditional political donor, contributing to various candidates across party lines. However, after calling the Democratic Party a “party of division and hate” in May 2022, Musk’s political leanings pivoted sharply. By July 2024, he had endorsed Donald Trump, becoming a major financial supporter of Republican candidates, signaling a complete break with Newsom’s political alignment.
Shortly following his endorsement, Musk announced the relocation of his companies to Texas, citing a California law regarding gender identity that he deemed unacceptable. He shared personal insight about his transgender daughter, Vivian, expressing a sense of loss.
Newsom had championed several pro-transgender policies, proudly signing them into law. Tensions peaked when Newsom’s office posted a critical remark regarding Musk and his estrangement from Vivian, which Musk countered by framing it as a mental health issue, indicating his daughters had a more positive relationship with him.
Newsom’s recent attacks and provocations seem to align with a trend of using social media as a battleground, mirroring tactics often employed in partisan politics. Some commentators, like Ashley Vance, believe Newsom should focus on fixing California’s pressing issues rather than engaging in social media battles.
Despite their contentious relationship, Niedermayer believes that Newsom remains fundamentally pro-business and would likely continue to support Tesla if Musk hadn’t aligned with conservative ideologies. The reality is that both of them never truly formed an alliance; they were more useful to each other as symbols of California’s innovation.
Currently, the facade of a friendly partnership has crumbled. Even though Tesla continues to operate in California and employs thousands, the narrative of camaraderie between Newsom and Musk is all but gone.
Newsom’s $100,000 investment in a Tesla Roadster was once seen as a symbol of solving California’s environmental challenges. But this ongoing feud illustrates a stark reality: beneath the posturing, they were never real allies, merely using each other as props. California needed a tech leader to promote clean energy; Musk required state support to make it happen. Now, it feels like they’ve lost that initial spark and are left merely squabbling over the remnants of their connection.
