How California Tried and Failed To Destroy Tesla

 

How California Tried and Failed To Destroy Tesla

Tesla's Fremont Expansion Shutdown: A Blow to California's EV Ambitions

California has lost its woke mind, and as a native-born and raised San Franciscan who watched Elon Musk revolutionize the automobile industry by literally electrifying it right here in Fremont, this story is both heartbreaking and disturbing. What was once a beacon of innovation and jobs—the Tesla Fremont factory—now stands as a symbol of how overzealous regulations can drive progress away. 

I grew up seeing the old NUMMI plant transform into a cutting-edge EV powerhouse, employing thousands and putting California at the forefront of the green revolution. But aggressive policies, endless bureaucracy, and punitive laws have turned that dream into a cautionary tale.

This YouTube video from Sophia Miller, posted January 17, 2026, delivers a razor-sharp, highly informative, no-holds-barred analysis of California's self-inflicted wound—it's absolutely AMAZING, must-watch, and spot-on in every way!!!

Tesla canceled its Fremont factory expansion, announced in 2021 to add 500,000 annual vehicles and 4,000 jobs.

California's delays, multiple agency permits, and AB 1346 (net-zero emissions by 2030, adding ~$600M costs) made it unviable. Tesla spent over $80M on compliance with no approvals.

Result: $4,000 higher per-vehicle cost vs. Texas (~$2B annual disadvantage at scale), leading to cancellation in 2023. Focus shifted to Texas/Nevada incentives.

Impacts: 4,000 direct jobs lost, 15,000+ indirect; $30M annual tax revenue gone amid $23B state shortfall.

California's aggressive policies backfired—pushing manufacturing out, not destroying Tesla.

Me and Governor Newsom

I recently ran into California Governor Gavin Newsom at our 40th Redwood High School reunion in October 2025. While standing in line for my badge, I turned around—and there he was.

Back when Gavin first ran for mayor of San Francisco, I worked on his campaign. One night at Balboa Cafe, we were discussing his chances. He asked if I thought he’d win. I said, “Of course you’re going to win!” When he pressed me why I was so sure, I told him: “I think you’re going to become President of the United States one day—this is just the first step.”

He looked genuinely surprised and asked what made me believe that. I answered: “Gavin, you have that JFK vibe Americans love, and your oratory skills rival Dr. Martin Luther King Jr. Your path to the White House is clear.”

He seemed flattered, thanked me for the support, and said he hoped I was right.

Fast forward to now. As a native-born Californian, I’m stunned by how poorly the state is managed. The dysfunction feels absurd, and I hold Gavin largely responsible.

Yet here’s the strange part: when we spoke at the reunion, he was as charming, charismatic, and articulate as ever. We had a great conversation. In person, he’s thoughtful and intelligent. 

Governor Gavin Newsom & Jake Ehrlich at their 40th Redwood High School Reunion in 2025. 

Two San Francisco kids who went very, very different ways...

That leaves me deeply perplexed—how can California be falling apart under someone who seems so capable, charismatic and competent up close?

Do I still think Gavin will become President? Yes. I believe he’s very likely to be the next President of the United States. Let that sink in.

For the record, I also don’t think the American people truly elect the President. I believe he’s always chosen by the powers that be.

The news that Tesla is completely moving out of California totally bums me out...After I purchased my first Tesla in 2014, which was a P85D Model S (pictured below), Tesla invited me to take a tour of their factory, which completely blew my mind!!! 

California's war on Tesla didn't destroy the company—it only accelerated its exodus to freer states. As a lifelong Californian who once believed in the promise of innovation here, I now watch with sadness as jobs, investment, and progress are quickly fleeing. The Fremont factory remains a symbol of what could have been, but Tesla thrives anyway. The real loss is California's.