Elon Musk Announces Move of X and SpaceX Headquarters to Texas
Elon Musk has revealed plans to relocate the headquarters of both X (formerly Twitter) and SpaceX from California to Texas. In a series of posts on X, Musk cited California’s recently enacted transgender rights law as a decisive factor in his decision. While Musk did not specify a timeline for the move, his comments make clear his reasoning.
Musk described the new law, which protects the privacy of transgender students, as “the final straw.” He criticized the law for, in his view, targeting both families and businesses. “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 wrote. He also stated that “X HQ will move to Austin” from San Francisco, expressing frustration over safety concerns, including encounters with “gangs of violent drug addicts.”
The relocation of headquarters, while initially symbolic, can have significant economic implications for states like California, which depend on revenue from high-income tech employees.
Musk's dissatisfaction with California's regulations is not new. In 2020, he personally relocated to Texas, partly to avoid California’s high taxes. The following year, he moved Tesla’s headquarters from Silicon Valley to Austin due to dissatisfaction with local pandemic restrictions. Additionally, Musk’s Boring Company shifted its operations from California to Texas in 2022.
The controversial law signed by California Governor Gavin Newsom bars schools from disclosing a student’s gender identity, gender expression, or sexual orientation without the student’s consent. It overrides local policies that required educators to inform parents if their child showed signs of being transgender. Musk had previously warned Newsom that such laws would prompt families and companies to leave California to protect their children.
Governor Newsom’s office has not commented directly on Musk's statements but emphasized that California law still requires parental consent for name changes and grants parents access to educational records.
Musk's criticism of California’s policies is also personal. A biography by Walter Isaacson revealed that Musk blamed his oldest child's school for introducing ideas that led to her transition and estranged him from her life.
Following his acquisition of Twitter in 2022, Musk allowed users to post transgender individuals' former names and relaxed moderation of anti-LGBTQ content, leading to criticism from activists.
A GLAAD spokesperson criticized Musk’s move, stating it was expected from someone with a history of “hateful rhetoric.” They defended California's new law as a model for protecting LGBTQ students' safety and privacy.
Texas Governor Greg Abbott praised the move on X, celebrating SpaceX's relocation.
While Musk continues to move key operations to Texas, some of his ventures remain in California. His AI company xAI is based in Burlingame, and Neuralink is located in Fremont. Despite moving Tesla’s headquarters to Texas, significant manufacturing remains in Fremont, with an engineering headquarters announced in Palo Alto
