Tesla CEO Elon Musk gives ‘bankruptcy’ warning for California

Tesla CEO Elon Musk has warned that California is at risk of going bankrupt if significant changes aren’t made. In a post on X, Musk emphasized the urgency of the situation, stating, “Crucial or California will go bankrupt.”
The tech billionaire quoted an X user’s post that read “We need @DOGE California. ASAP, please. @elonmusk”.

While Musk did not elaborate on specific causes, his warning aligns with ongoing concerns about the state’s financial struggles. California has faced mounting budget deficits, with Governor Gavin Newsom recently announcing plans to address a shortfall estimated at over $68 billion. Critics point to high government spending, business regulations, and an exodus of companies and wealthy residents as factors straining the state’s economy.
Musk himself moved Tesla’s headquarters from California to Texas in 2021, citing regulatory challenges and what he described as an unfriendly business environment. He has frequently criticized the state’s policies, particularly on taxation, energy management, and corporate regulations.

Elon Musk recently warned that the United States could face bankruptcy without significant budget cuts, as he pushes for reduced federal spending under President Donald Trump's administration.
Speaking at the White House on Tuesday with Trump, Musk emphasized that reducing government spending is not just an option but a necessity. "It's not optional," Musk told reporters. "It's essential."
Musk has been appointed to lead cost-cutting initiatives through the newly created Department of Government Efficiency (DOGE). He criticized the federal bureaucracy, referring to it as an "unelected, unconstitutional branch of government" that, in his view, wields more power than elected officials.