Written By Lisa MurimiBillionaire Elon Musk announced on Tuesday that he will relocate the headquarters of his rocket firm SpaceX and social media platform X from California to Texas.
Musk attributed the move to a newly passed California law that prohibits schools from mandating staff to inform anyone, including parents, about a child’s gender identity.
A spokesperson for the California governor defended the law, stating it “keeps children safe while protecting the critical role of parents.” However, Musk criticized the legislation, calling it “the last straw” on his social media platform, X.
This isn’t the first time Musk has shifted business operations to Texas. In 2021, he moved Tesla’s headquarters to the state, where he is also a resident—benefiting from Texas’ lack of income tax.
The law has sparked a national debate on parental rights versus student privacy. LGBTQ advocates argue that students have a right to privacy, while others insist parents have the right to know about their children’s gender identities.
“It protects the child-parent relationship by preventing politicians and school staff from inappropriately intervening,” said Brandon Richards to the Associated Press.
Musk, who has a transgender daughter, has shown mixed support for transgender rights. His daughter, Vivian Jenna Wilson, legally changed her name and gender in 2022, seeking to sever ties with her father.
Last year, Musk suggested he would lobby to criminalize transgender medical treatment.
In a post on X, Musk stated, “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.”
California Governor Gavin Newsom criticized Musk’s decision on social media, accusing him of capitulating to pressure.
The move highlights the ongoing competition among states to attract corporate headquarters, which bring high-paying jobs. SpaceX, which employs over 5,000 people in California, already has substantial operations in Texas. Texas Governor Greg Abbott welcomed the announcement, saying, “This cements Texas as the leader in space exploration.”
Neither SpaceX nor X commented on whether the headquarters relocation would result in job cuts in California.
