[FlacidPhil]

My guess is because you can't even BUY a Tesla in Texas. Why would they set up a $5B factory in a state where they can't even sell a car? http://www.teslamotors.com/advocacy_texas

EDIT: Amongst other reasons of course, just a guess on one factor. Hard to say it's business friendly when they've banned the company from doing business there.

[jack-r-abbit]

My thought exactly. Don't just pick a place business friendly. Pick a place that is friendly to your business.