Tesla doesn’t make money from manufacturing and selling cars and never has. what they do is resell the regulatory credits they get to car companies that don’t make enough vehicles that hit emissions standards. It’s the only thing that has kept them barely making a profit but as other manufacturers are now making vehicles with less emissions that side of their business is about to squeezed and they may be looking at them going back to the days of zero profits. A Texas move makes sense from that standpoint for many reasons including cheaper labor and bigger tax breaks not income tax as much as relocation breaks and an overall cheaper workforce but Elon also has a pretender syndrome and is dying to be seen as Tony Stark.
A lot of his startup cash was gifted him by Cali investors and taxpayers but as other manufacturers need his services less it makes sense to try and make the car part of the business a success rather than an excuse to gather and sell credits.
An interesting article on how it worked:
Tesla's dirty little secret: Its net profit doesn't come from selling cars - CNN
With the credit selling market drying up, it’s going to be interesting to see if they can survive. I love their design but that’s the main thing going for them.