Tech magnate Elon Musk announced on Tuesday that he will be relocating the headquarters of his social media company X and aerospace company SpaceX from California to Texas. This decision comes in response to a newly signed California law by Governor Gavin Newsom.
Musk made the announcement on the social media platform formerly known as Twitter, stating that the SpaceX headquarters will move from Hawthorne, California, to Starbase, Texas, and that the headquarters for X will shift from San Francisco to Austin.
Musk expressed his frustration with the new law and other previous regulations, stating that they negatively impact families and businesses. He specifically mentioned a recent California law that prevents school districts from notifying parents if their child seeks to change their gender identity, calling it the “final straw.”
In a post, Musk claimed he had warned Governor Newsom that such laws would push families and businesses out of California. Musk also cited issues with the location of X’s headquarters in San Francisco, mentioning dangerous conditions in the surrounding area as a factor in his decision.
Governor Newsom responded to Musk’s decision with a one-sentence reply, “You bent the knee,” accompanied by an image of a past tweet from President Trump about Musk.
California State Senator Scott Wiener criticized Musk’s move, pointing out that the state had supported his ventures with taxpayer subsidies and questioning the sincerity of the relocation.
LGBTQ rights advocates also voiced their disapproval. Gabrielle Antolovich, Director of the Billy DeFrank Center in San Jose, argued that Musk, despite his wealth, does not comprehend the issues at hand. She shared her personal experience of navigating her sexual orientation during her school years.
In 2021, Musk had already moved Tesla’s corporate headquarters from Palo Alto to Austin, although the company continues to maintain a significant manufacturing facility in Fremont. Musk has also relocated his private residence from California to Texas.
Since acquiring Twitter in a $44 billion deal and renaming it X, Musk has made significant changes, including firing or laying off many employees and top executives. In June 2023, he rebranded the platform as X and installed a bright, flashing X logo on the San Francisco office building, which was later removed due to complaints and a lack of proper permits.