Tesla’s CEO Elon Musk has recently announced the relocation of the company’s headquarters from Palo Alto to Austin, Texas, and California Gov. Gavin Newsom has released his response.

“I’ve known Elon 20 years, I’ve appreciated the investments he’s made, his innovative spirit… what an extraordinary talent,” the governor stated on Friday, citing that the state’s tax and regulatory environment breaks have contributed to the growth of the company.

Newsom also noted that California leads in terms of electric vehicle manufacturing.

“I have deep reverence for that individual [Elon], but I also have deep reverence for this state,” he said.

The relocation plans of the company were unveiled by Musk during his meeting on Thursday with the Tesla shareholders.

“I’m excited to announce we are moving our headquarters to Austin, Texas,” he said.

“Our factory is five minutes from the airport, 15 minutes from downtown, and we’re going to create an ecological paradise because we’re right on the Colorado River. It’s going to be great,” he furthered.

The CEO warned of the transfer of its main office last year following a quarrel with county leaders regarding the closure regulations of Tesla’s factory during the health crisis.

Other companies, including Hewlett Packard and Oracle, have followed Tesla’s lead as they also transferred to Texas in 2020, KRON4 reported.

“California has been winning for a long time, and I think they’re taking it for granted,” Musk, who has been critical to the state before, said.