Y Combinator's Garry Tan Criticizes California Economy Days After David Sacks Urges Austin Expansion Amid Tax Concerns - Tesla (NASDAQ:TSLA)

Group 1 - Garry Tan, President and CEO of Y Combinator, criticized California's economic conditions, highlighting issues such as high unemployment, homelessness, and housing prices [1][2] - The Financial Times column by Michael Moritz warned that California's billionaire tax plan may backfire due to the state's reliance on a few wealthy individuals [3] - David Sacks suggested Y Combinator consider opening an office in Austin to mitigate risks associated with California's fiscal and political pressures [4] Group 2 - Sacks emphasized the importance of geographic diversification for Y Combinator, noting the growing startup ecosystem in Austin following relocations by major figures like Elon Musk [4] - Tan acknowledged the potential for expansion into Austin or Cambridge if California's wealth tax is put to a vote, while also noting that startups in the San Francisco Bay Area achieve product-market fit at a rate 2.5 times that of Austin [5] - Y Combinator has a history of backing significant tech companies, including Airbnb, Reddit, and DoorDash [6]