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San Francisco Mayor London Breed lashed out at Tesla boss Elon Musk as “the person who got a ton of tax breaks in California and decided to take that money and run.”

Breed, who has lamented the adverse economic impact of remote work on her city, has expressed frustration with tech CEOs for promoting the narrative that the Bay Area was a crime-infested hellhole full of drugs and homeless people.

“My hope is that those who are critical would focus on trying to be a part of the solution rather than part of the problem,” Breed told Bloomberg News.

When asked about Musk’s frequent criticism of Democrat-run states and cities, Breed replied sarcastically: “You mean the person who got a ton of tax breaks in California and decided to take that money and run?”

 

Last year, Musk relocated the headquarters of his electric car company, Tesla, to Austin, Texas. It had previously been headquartered in Palo Alto, Calif.

The decision by Musk to pull up stakes and leave the Bay Area was met with outrage from California lawmakers who reminded him that Tesla had received more than $3.2 billion worth of direct and indirect subsidies from Sacramento since 2009.

But Musk was in no mood for nostalgia. Upon announcing his decision to move to Texas, he said: “California used to be the land of opportunity. Now it has become and is becoming more so the land of overregulation, overlitigation, overtaxation and scorn.”

Breed lashed out at Musk for accepting tax subsidies from California -- only to relocate his electric car company headquarters to Texas.
Breed lashed out at Musk for accepting tax subsidies from California — only to relocate his electric car company headquarters to Texas.
Anadolu Agency via Getty Images

In April, Musk, who is in the process of acquiring San Francisco-based social media firm Twitter, suggested that the company’s headquarters in the Civic Center section of the city be converted into a homeless shelter “since no one shows up anyway.”

Breed, a Democrat, also called out San Francisco tenant Marc Benioff’s Salesforce, the city’s largest private employer and owner of its tallest office tower.

 

Breed told Bloomberg News she has tried to persuade Benioff, a billionaire and native San Franciscan, to bring his charges back into the office.

“He’s very supportive of the city, continues to contribute that support to schools and to other great causes, but the building is empty, and that’s a real problem,” Breed said of Benioff.

“Ultimately I can’t force or mandate, right? These companies are making the decisions that they believe that are in their best interests.”

The lack of foot traffic in tech-dominated San Francisco has had a devastating impact on small businesses in the area. The city estimates that one-third of its pre-pandemic workforce has stayed away from the office.

The advent of remote work during the pandemic has resulted in far less foot traffic on the streets of San Francisco -- to devastating effect on the local economy.
The advent of remote work during the pandemic has resulted in far less foot traffic on the streets of San Francisco — to devastating effect on the local economy.
Bloomberg via Getty Images

Breed told Bloomberg News that her city will need to “get creative and diversify” if it hopes to lure employees back into their cubicles.

Since 2021, Salesforce has put in place a so-called “hybrid” model for its 77,000 employees who were given the choice to work “where, when, and how they’ll be most effective.”

Contact information for Salesforce, Benioff, and Musk were not immediately available.