Tesla CEO Elon Musk announced Tuesday on his X handle that he is relocating the headquarters of SpaceX and the social media platform X, formerly known as Twitter, to Texas. This decision comes amid his growing criticisms of California’s business environment and a recent state law.
Citing controversial legislation
Musk’s decision was influenced by a new California law that bans teachers from informing families about student gender identity changes. He tweeted that this law was the “final straw,” prompting the move of SpaceX’s headquarters from Hawthorne to its launch test site in Texas.
“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 posted.
Impact on Southern California’s space economy
The relocation of SpaceX is a significant blow to Southern California, where the company has been a cornerstone of the region’s burgeoning space industry.
Shortly after announcing the SpaceX move, Musk revealed plans to move X’s headquarters from San Francisco to Austin, Texas. He cited safety concerns, stating, “I’ve had enough of dodging gangs of violent drug addicts just to get in and out of the building.”
A Continuing feud with California
This announcement marks the latest in Musk’s ongoing feud with California. Nearly three years ago, he relocated Tesla’s headquarters to Austin from Palo Alto, citing high housing costs and long employee commutes. Tesla still maintains manufacturing operations in Fremont.
The move comes during a highly charged presidential campaign, with Musk increasingly aligning with conservative views. He was among the first major entrepreneurs to endorse Donald Trump for President.
Criticism from California officials
Democratic State Senator Scott Wiener, representing San Francisco, criticized Musk’s decision, highlighting the substantial subsidies Musk’s ventures have received from California. Wiener questioned the sincerity of Musk’s motivations, suggesting it could be a “fake temper tantrum move” similar to Tesla’s previous relocation announcement. “He has a history of saying one thing and it not being true,” Wiener remarked.
Musk’s relocation decisions continue to stir debate, reflecting broader tensions between business leaders and state policies in California.