Yahoo Finance 'The City Is In A Doom Spiral' Says Elon Musk But Won't Move Twitter Out Of San Francisco
In a series of tweets last year, Elon Musk reflected on the state of San Francisco, where his social media company X, formerly known as Twitter, is located. He started off by saying, "Many have offered rich incentives for X (fka Twitter) to move its HQ out of San Francisco."
He also shared that many expect his company to move out of the city. Yet despite San Francisco being "in a ‘doom spiral' with one company after another leaving," X will not move its headquarters.
He added, "You only know who your real friends are when the chips are down. San Francisco, beautiful San Francisco, though others forsake you, we will always be your friend."
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The following day, Musk emphasized that the city can’t survive if more people don’t come to work in San Francisco. This seems to have struck a nerve in many people, as numerous commenters added that the city is "a lost cause; it's being run by inmates," "no one wants to live there," and "no one can afford San Francisco."
A month later, Marc Benioff, the co-founder and CEO of Salesforce (NYSE:CRM), tweeted that his company is staying and that a third of AI companies are headquartered there. Musk responded, "That’s great! It’s very important that people come into the office, or the stores, restaurants, etc. can’t stay in business."
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San Francisco has been having a rough time lately, prompting Elon Musk to tweet again. The COVID-19 pandemic hit San Francisco hard, causing many businesses to close and resulting in fewer tourists visiting.
In addition, many companies now let employees work from home, so fewer people are commuting to the city for work, which hurts local businesses that depend on those daily workers and visitors. Musk has also been a vocal opponent of the work-from-home movement, even calling it "morally wrong."
The city has become expensive in the last five to 10 years. Rent and housing prices are through the roof, and everyday costs have significantly increased.
Another major issue is homelessness, with an increasing number of people living on the streets and the city struggling to provide adequate help. Makeshift shelters and tents are an everyday occurrence, raising worries about safety and cleanliness.
Lastly, crime is also a problem. With increased theft and violent crime, people and businesses are concerned about safety, and many are considering moving to safer areas. Everyday items are now locked behind glass doors in stores, making the crime issue even more visible to local people and visitors alike.
A spree of so-called smash-and-grab crimes has prompted people to leave their cars unlocked to avoid having their windows smashed.
These combined issues make it feel like San Francisco is in a downward spiral.
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