California Wants Credit for Creating Elon Musk

Jul 13, 2026

A California official argues the state's early support built Elon Musk's fortune, framing this as a bitter falling-out that could cost America the EV race.

  • California claims its regulations and incentives, like support for Solar City, gave Musk the room to take big risks and get rich.
  • The complaint: Musk still takes R&D tax breaks and keeps his talent, headquarters, and Grok work in California while turning his back on the state.
  • The bigger worry is that America — under both Musk and Trump — is handing the electric car market to China.
  • Losing the EV space to China is framed as one of the biggest strategic mistakes of the coming decade.

Outlook: Expect more friction between Musk and California, with China poised to gain ground in electric vehicles.

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