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California trip recommendations? (Berlin)

Hi there!
This year July, I want to make my father's dream come true and travel California with him. We are planning to fly into L.A. and make our way up to Morro Bay to see our relatives. Then, up North to San Francisco. Total 2 weeks.
Do you have any recommendations about
- How to best get from L.A. to Morro Bay (bus, rental car, flight ...)
- What the must-sees are and what you recommend, both on the way or around L.A. to Morro Bay and to Frisco
- B&B's or hotels to stay
I highly appreciate and look forward to your suggestions!
Thanks ahead and best,