Why assume everyone is living in SF? I can’t imagine Elon actually asking his employees and taking there opinions into account, but my experience is that people are commuting in every direction in the Bay Area. This will be closer for some people without a doubt.
Does any employer factor this in? That's the employee's time/expense, not the company's. After all, SF is one of the cities with the worst traffic (to say nothing of the cost of living)
Yes, I’ve been at two companies that changed office locations and both took into consideration the effect of a commute change on employees.