Elon Musk, the CEO of SpaceX and Tesla, announced on July 16, 2024, that he will move both SpaceX and X's headquarters from California to Texas. The reason for this decision was a new law signed by California Governor Gavin Newsom on July 15 that prohibits schools from notifying parents when their child changes their gender identity. Musk stated in a tweet that this law was the 'final straw' and that he had warned Newsom about such laws last year.
SpaceX will move its headquarters from Hawthorne, California, to Starbase near Boca Chica in South Texas. X, Musk's social media company, will relocate from San Francisco to Austin. In a tweet announcing the moves, Musk cited safety concerns and issues with the city's homeless population as reasons for moving X.
California has been a hotbed of controversy regarding transgender rights in recent years. The new law is part of a larger trend towards protecting transgender students from discrimination and outing by schools. However, some argue that it infringes on parents' rights to know about their child's gender identity.
Musk has been a vocal critic of progressive politics and has clashed with Newsom in the past over various issues. He endorsed former President Donald Trump after the assassination attempt on his life and donated millions to his campaign.
The moves come as Tesla, another Musk-led company, continues to expand its operations in Texas. The electric car manufacturer moved its headquarters from Palo Alto, California, to Austin in 2021.
California has long been a hub for tech companies and startups. However, the high cost of living and strict regulations have driven some businesses to consider leaving the state. Musk's decision to move SpaceX and X's headquarters could be a sign of things to come for other companies in the industry.