Billionaire entrepreneur Elon Musk has announced plans to move the headquarters of both SpaceX and X (formerly Twitter) from California to Texas, citing recent legislation in Democrat-controlled California as the catalyst for his decision.
On Tuesday, Musk declared on X that SpaceX would relocate its headquarters from Hawthorne, California, to Starbase, Texas, while X would move from San Francisco to Austin.
The announcement came in the wake of California Governor Gavin Newsom signing AB 1955, also known as the SAFETY Act, which bans schools from requiring staff to notify parents that their child has declared themselves transgender.
“This is the final straw,” Musk stated on X. “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.”
Musk claimed he had warned Governor Newsom about the potential consequences of such legislation a year ago, stating, “I did make it clear to Governor Newsom about a year ago that laws of this nature would force families and companies to leave California to protect their children.”
The tech mogul also cited crime issues in San Francisco as a reason for moving X, stating, “Have had enough of dodging gangs of violent drug addicts just to get in and out of the building.”
This move follows a pattern of Musk’s companies leaving California. In 2021, Tesla relocated its corporate headquarters to Austin from Palo Alto, California. Musk himself has also moved his residence to Texas, a state with no personal income tax.
The decision has sparked controversy and debate. California State Senator Scott Weiner, a Democrat, criticized Musk’s stance, tweeting, “Elon Musk is a textbook example of why kids shouldn’t be forced to come out to their parents,” in response to Musk’s claim that “the state will take away your kids in California.”
Governor Newsom’s office defended the new law, claiming it “helps keep children safe while protecting the critical role of parents” by banning schools from sharing certain information.
SpaceX’s move to Starbase, Texas, aligns with its existing operations there, where the company builds and launches its massive Starship rockets. The site is located at Boca Chica Beach, near the Mexican border and South Padre Island, about 20 miles from Brownsville.
This relocation of major tech companies highlights the growing competition between states to attract high-profile businesses and the impact of liberal state policies on corporate decision-making.
As of now, Governor Newsom’s office has not responded to requests for comment on Musk’s decision to move his companies out of California.