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The relationship between Musk and Governor Newsom has been strained over various issues, which include the decision to shut down a Tesla factory during the early months of the pandemic and California's legislative decisions surrounding social issues, such as the approval of a bill regarding transgender children in 2021. Their ongoing disagreements have contributed to Musk's decision to relocate Tesla's headquarters from California to Texas, a move that was emblematic of the broader tensions between business leaders and governmental policies.