Gov. Gavin Newsom (D-CA) has said that the government of California should be able to become a shareholder in Elon Musk-led Tesla Inc. (NASDAQ:TSLA), criticizing the President Donald Trump administration’s Intel Corp (NASDAQ:INTC) deal.
Gavin Newsom Touts Corporate Welfare
On Monday, the official Press Handle for the Newsom administration took to X, quoting a post by user Scott Lincicome, who shared an article by the Wall Street Journal that explored the deep ties between Trump and Intel, as well as how Apple Inc. (NASDAQ:AAPL) CEO Tim Cook was urged by Trump to get into business with the chipmaker.
The article also shared how the Trump administration was Intel’s largest shareholder and had taken a “hands-on approach,” calling this type of “state capitalism” unprecedented.
“TIME FOR CALIFORNIA TO COLLECT TESLA SHARES FOR ALL THE CORPORATE WELFARE WE GAVE ELON! PAY UP!!!” the Press Office handle said in its post.
Gavin Newsom Vs Elon Musk
This is not the first time the Governor has claimed that California was instrumental in the success of Musk-led enterprises like Tesla and Space Exploration Technologies Corp. (NASDAQ:SPCX).
Newsom’s Press Office had earlier said that the companies would be “nothing without California’s subsidies, generous corporate incentives, talent pool, and manufacturing base!”
The California Governor had slammed Trump’s Intel deal last year during an interview with Politico, calling the move “outrageous” and “reckless.” He also said that there would be outrage if former President Joe Biden had made a similar move to “nationalize” Intel.
The Governor, during an interview, also slammed Musk’s close association with Trump, calling the trillionaire “one of the great disappointments,” but also hailed the Tesla CEO as a great innovator and the Thomas Edison of the modern era. He also said that a favorable regulatory environment in California helped Musk amass his wealth.
On the other hand, Musk has criticized Newsom and California, slamming the state’s proposed billionaire wealth tax on society’s richest members, among other policies.
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