Elon Musk Announces Move of X and SpaceX Headquarters to Texas

Elon Musk revealed plans to relocate the headquarters of his companies, X and SpaceX, from California to Texas. In a series of posts on X on Tuesday, Musk shared his reasoning for the move, though he did not specify a timeline.

Musk pointed to a recent California law protecting the privacy of transgender children as the tipping point. "This is the final straw," he commented, criticizing the law and other regulations he views as detrimental to families and businesses. He announced SpaceX will move its headquarters from Hawthorne, California, to Starbase, Texas, and X will relocate from San Francisco to Austin. Musk expressed frustration over "dodging gangs of violent drug addicts just to get in and out of the building" in San Francisco.

These moves, while initially symbolic, could significantly impact California if staff relocate, as the state relies heavily on taxes from tech workers.

Musk has had a contentious relationship with California's regulations for years. In 2020, he personally moved to Texas to avoid California’s high taxes. The following year, he relocated Tesla’s headquarters to Austin due to frustrations with local pandemic restrictions. His Boring Company also left California for Texas in 2022.

The new California law, signed by Governor Gavin Newsom on Monday, prevents schools from requiring staff to disclose a student’s gender identity, gender expression, or sexual orientation without the student's permission. It overrides local policies that mandated educators inform parents if their children showed signs of being transgender.

Musk claims he had warned Governor Newsom that such laws would drive families and companies out of California. Newsom's office responded by noting that parental consent is still required for name changes and parents have access to educational records.

Musk's stance on parents' rights is personal. A biography by Walter Isaacson revealed that Musk blames his oldest child's school for her transition and subsequent estrangement from him.

Since acquiring Twitter in 2022, Musk has faced criticism for allowing users to post transgender people's former names and easing restrictions on anti-LGBTQ content. A spokesperson for GLAAD criticized Musk’s actions, stating that California’s support for transgender and nonbinary students ensures their safety and privacy.

Requests for comment from X, SpaceX, and Newsom went unanswered. Texas Governor Greg Abbott celebrated SpaceX’s move on X.

Despite these relocations, several Musk companies remain in California. His OpenAI competitor xAI is in Burlingame, Neuralink is in Fremont, and Tesla still has significant manufacturing operations in Fremont, with an engineering headquarters in Palo Alto announced last year.

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