Elon Musk, the CEO of SpaceX and X (formerly Twitter), announced on various social media platforms that he will be moving both companies' headquarters from California to Texas. The decision comes after California Governor Gavin Newsom signed a law preventing schools from sharing information about transgender or gay students without parental consent. Musk, who has a transgender daughter, cited this law as the reason for leaving.
SpaceX will be moving its headquarters from Hawthorne in Southern California to Starbase in Texas. X, which is currently headquartered in downtown San Francisco, will relocate to Austin.
This is not the first time Musk has threatened to leave California over political differences. During the pandemic, he sued the state and considered moving Tesla's headquarters due to Covid-19 restrictions. However, earlier this year, Musk brought part of Tesla's operations back to California.
Musk has grown increasingly vocal and conservative in his political views in recent years. He recently announced that he would be funneling $45 million a month into a political action committee to support former President Donald Trump.
The move comes as Austin, Texas, is positioning itself as the next big tech hub. In 2023, Google and Meta Platforms expanded their footprint in the city. Salesforce also announced plans to hire thousands of employees there. However, some companies have reneged on their expansion plans due to high borrowing costs.
Two space firms, Latitude and AstroForge, are trying to capitalize on Musk's move by poaching SpaceX employees. Latitude CEO Stanislas Maximin offered 12 bottles of champagne to engineers who make the move from SpaceX to France.
Musk's decision has been met with mixed reactions. Some have praised him for standing up for families and companies, while others criticize him for leaving California over a single law. The LGBTQ community and their allies have also expressed concern about the potential impact on transgender students in California schools.
California Governor Gavin Newsom's office did not immediately respond to a request for comment.