Tesla CEO Elon Musk announced on Tuesday through his X handle that he is relocating the headquarters of both SpaceX and the social media platform X, formerly known as Twitter, to Texas. Musk cited several criticisms of California and the challenges of conducting business in San Francisco, as reported by the Los Angeles Times.
Musk pointed to a new California state law that bans teachers from informing families about student gender identity changes as a key reason for his decision. He tweeted that SpaceX's headquarters would move from Hawthorne, California, to the company's launch test site in Texas. This move is seen as a significant blow to Southern California, where SpaceX has been a cornerstone of the region's burgeoning space economy.
"This is the final straw," Musk posted. "Because of this law and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas."
The cited law was signed by Governor Gavin Newsom on Monday after a heated battle between conservative school boards concerned about parental rights and LGBTQ+ activists advocating for the protection of vulnerable youths.
Shortly after announcing the move of SpaceX, Musk also revealed that he would relocate the headquarters of X from San Francisco to Austin, Texas. He expressed frustration with the conditions in San Francisco, stating, "I have had enough of dodging gangs of violent drug addicts just to get in and out of the building."
This announcement marks the latest development in Musk's ongoing feud with California and comes nearly three years after he declared the relocation of Tesla's headquarters to Austin from Palo Alto. Musk had cited the high cost of housing and long commutes for employees as reasons for that move, though Tesla continues to maintain a manufacturing operation in Fremont, California.
Musk's decision comes amid a highly charged presidential campaign, with Musk increasingly aligning with right-leaning ideologies. He was one of the first entrepreneurs to openly endorse Donald Trump for President ahead of the elections.
Democratic State Senator Scott Wiener, who represents San Francisco, responded to Musk's announcement by pointing out that Musk has greatly benefited from California subsidies. "Will this be a fake temper tantrum move just like Tesla's fake 'move' to Texas?" Wiener posted. He added, "I'm not confident that whatever he's going to do has anything to do with a law that we passed to protect the safety of trans kids. He has a history of saying one thing and it not being true."
