Elon Musk announced that both X and SpaceX will transition their headquarters from California to Texas. This move follows Governor Gavin Newsom’s signing of California’s SAFETY Act (AB1955), aimed at protecting LGBTQ students.
Policy Disagreements and Relocation Decision
Musk referenced the new measure as a key factor, voicing concerns about its effects on families and businesses. On social media, he stated that SpaceX headquarters will shift from Hawthorne, California, to Starbase, Texas, while X will relocate from San Francisco to Austin.
This is the final straw.
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. https://t.co/cpWUDgBWFe
— Elon Musk (@elonmusk) July 16, 2024
The headquarters’ relocation may affect California financially, given its taxation of high-income tech professionals. Musk has previously criticized California’s policies, suggesting they might prompt an exodus of companies and residents. Musk himself relocated to Texas in 2020, potentially mitigating his own tax liabilities.
Previous Business Moves
This relocation is part of a pattern for Musk. In 2021, Tesla’s headquarters moved to Texas following the shutdown of its Fremont factory by California health officials amid the pandemic. Recently, Musk filed to shift SpaceX’s incorporation to Texas, and The Boring Company also moved its operations there in 2022.
And HQ will move to Austin https://t.co/LUDfLEsztj
— Elon Musk (@elonmusk) July 16, 2024
Musk’s views on parental rights and gender identity reflect personal experiences. Walter Isaacson’s biography reveals Musk blamed his child’s school for her gender transition and their estrangement. Since acquiring Twitter in 2022, Musk has rolled back certain platform policies on anti-LGBTQ content and permitted the use of transgender individuals’ former names.
Reaction and Feedback
Texas Governor Greg Abbott welcomed SpaceX to Texas via a social media post. Despite the headquarters relocations, several of Musk’s enterprises still operate in California. xAI, his AI company, is based in Burlingame, while Neuralink is located in Fremont. Tesla, although headquartered in Texas, maintains manufacturing in Fremont and recently inaugurated an engineering headquarters in Palo Alto.
Musk did not specify a timeline for the relocations. He has expressed dissatisfaction with the area around X’s current San Francisco headquarters, citing issues with public safety. His future Texas plans include the development of a community near Austin called Snailbrook and potential plans to open a university.
Last Updated on February 20, 2025 1:23 pm CET
