Austin's culture is a plus for him, not a minus. Nonetheless, the rest of Texas is very different and more supportive of business. Think of it as California fifty years ago. San Francisco was crazy, but the rest of the state wasn't a bad place to live or do business. Maybe 20 years from now Texas will be like California, but by then, Musk will be on Mars and have other things to worry about.
Travis county and the city of Austin are just as bad as California — the rest of Texas is largely irrelevant there.
For that matter, every major city everywhere is now as bad as California. Soros bought them all.