While there has long been a surprisingly sizable population of engineering professionals living in and working OUT of the area, over the last few years an enthusiastic startup business culture has emerged.
There are multiple incubator / co-working facilities, a convenient airport, beautiful environment and as you note, a favorable tax structure.
Tesla, along with the gaming and defense industries, should really be just anchor businesses in a much deeper technology ecosystem. Reno very much has this potential.
As you say, a real sleeper.
[edit: mobile-typo]
I personally think the value of being in a hot well known startup city is overrated. My startup is in DC and we're doing fine.
I don't live in an urban area, but if I did I think it would be MPLS.
Downside is the winter, but I guess that's what Thinsulate was invented for.
Oh, and central Iowa has over 600 miles of bicycle trail.
1. Boulder 2. Austin 3. Omaha 4. Des Moines 5. Reno (the real sleeper, but just look at the low, low business tax rate and proximity to SF).
The above list isn't meant to be chiseled into stone—it's just a thought experiment on my part and I'm interested in what others think the pros/cons of these towns would be. The obvious con would be the lack of proximity to investor and startup networks and that ecosystem.