Musk to move SpaceX, X HQ from California to Texas over new law

Elon Musk, CEO of SpaceX and the social media platform X, announced Tuesday that he will be relocating both companies from California to Texas. Musk’s decision follows the signing of the Support Academic Futures & Educators for Today’s Youth (SAFETY) Act by California Governor Gavin Newsom. The law prohibits California school districts from implementing parental notification policies that would inform parents if their children identify as transgender.

Musk expressed his disapproval of the new law on X, stating, “This is the final straw. 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.” The decision also includes moving X from its current San Francisco location to Austin, Texas.

The SAFETY Act, signed into law on Monday, restricts school districts in California from forcing teachers and staff to disclose a student’s gender identity to their parents or guardians. Additionally, it mandates that schools provide resources to parents and students on how to discuss issues related to gender identity.

Musk says he had previously warned Governor Newsom that such laws could drive families and businesses out of California. “I did make it clear to Governor Newsom about a year ago that laws of this nature would force families and companies to leave California to protect their children,” Musk wrote on X.

Musk’s announcement has garnered support from Caitlin Jenner who tweeted, “Strong move. The state is not the parent! Parental Rights.”

Texas Governor Greg Abbott welcomed Musk’s decision, also taking to X to comment, “This cements Texas as the leader in space exploration.” SpaceX already has significant operations in Texas, particularly in Starbase where it is working on its massive Starship vehicle, intended for use in the Artemis program and future human and cargo missions to Mars.

This move is not Musk’s first departure from California. In 2020, he threatened to move Tesla headquarters to Texas over California’s COVID-19 policies. By 2021, he followed through, relocating Tesla’s base from Palo Alto to Austin. Musk has also moved his personal residence from California to Texas, which does not levy a state personal income tax.

The SAFETY Act has been met with controversy in California. Before its passing, several school districts in counties such as Orange, Place, Riverside, and San Bernardino had already adopted parental notification policies regarding gender identity. Critics argue that the law interferes with parental rights and limits transparency between schools and families.

Supporters do not see it that way. “We’ve seen the vitriol in our local school boards,” said State Senator and Chairperson of the California Legislative LGBTQ Caucus Susan Talamantes Eggman. “We’ve seen the chaos from that. We’re saying it’s time to step back from the chaos and focus on what’s most important and that is the safety of our kids.”

“The youth deserve the space to be able to share this information with their family in the time that is right for them, and these forced outing policies take that right away and inject school board members into families’ very intimate experiences,” said Kathie Moehlig founder and executive director of TransFamily Support Services.