Elon Musk announced on Tuesday that he is relocating the headquarters of his social media platform X and rocket company SpaceX from California to Texas. The move comes in response to a new gender-identity law in California, which Musk described as the “last straw.”
This decision means that Musk, who recently endorsed Republican Donald Trump for the U.S. presidency, will have shifted most of his major enterprises to Texas. Musk himself moved from California to Texas in 2021, benefiting from the state’s lack of personal income tax.
The new California law, which prohibits school districts from requiring teachers to inform parents when a child changes their gender identity or sexual orientation, was a key factor in Musk’s decision. “Because of this law and the many others that preceded it, attacking both families and companies,” Musk explained on X, the platform he acquired in 2022. Musk, who has a transgender daughter, has become increasingly vocal on political issues, often criticizing the Biden administration and Democratic policies on transgender rights and immigration.
California voters typically support Democratic candidates, while Texas is known for its strong Republican base.
Musk stated that SpaceX’s main office would move to Boca Chica, Texas, and X would relocate to Austin. However, details regarding the extent of job and facility transfers from California to Texas remain unclear. SpaceX’s headquarters near Los Angeles, a key aerospace hub, houses thousands of employees who work on Falcon 9 rockets, Dragon capsules, and Starshield satellites.
In 2021, Musk moved Tesla’s headquarters from California to Texas, though he confirmed that California would remain Tesla’s engineering hub. Earlier this year, he also transferred SpaceX’s incorporation from Delaware to Texas following a Delaware judge’s ruling against his $56 billion compensation plan at Tesla.
Musk’s decision to relocate highlights his growing discontent with California’s regulatory environment and preference for the business-friendly climate of Texas. The relocation is expected to have significant economic implications for both states and the employees of Musk’s companies.
