In a significant move announced on Tuesday, Elon Musk declared that SpaceX and X (formerly Twitter) will relocate their headquarters from California to Texas. Musk cited recent California legislation as the “final straw” prompting the decision.
SpaceX Moves to Starbase
SpaceX, currently headquartered in Hawthorne, California, will move to Starbase, Texas, a town being developed by the company near Boca Chica Beach. The location is already home to SpaceX’s massive Starship rocket launches, while its Falcon 9 rockets launch from sites in California and Florida.
— Elon Musk (@elonmusk) July 16, 2024
X Moves to Austin
Simultaneously, the headquarters of X will shift from San Francisco to Austin, Texas. Musk expressed frustration with the increasing crime around the current X headquarters in San Francisco, which he described as plagued by “violent drug addicts.”
Full duration static fire of Flight 5 Super Heavy booster pic.twitter.com/8rF9KUdMUD
— SpaceX (@SpaceX) July 15, 2024
Legislative Catalysts
Musk specifically pointed to a newly signed California law as a catalyst for the relocations. The SAFETY Act, signed by Governor Gavin Newsom, prohibits school districts from requiring teachers to inform parents if a student identifies as a different gender. Musk argued this law and others have created an unwelcoming environment for families and businesses.
Personal and Financial Considerations
This move continues Musk’s trend of shifting his business interests to Texas. In 2021, Tesla’s headquarters moved from Palo Alto, California, to Austin. Musk himself relocated to Texas in 2020, a state known for its lack of personal income tax.
Implications and Responses
The relocation of SpaceX and X may have broader implications for California, potentially affecting its tax revenue and tech industry status. Governor Newsom’s office emphasized that the new law supports student privacy and safety, countering Musk’s criticisms.
Ongoing Operations in California
Despite the headquarters relocations, some of Musk’s ventures will remain in California. xAI, his AI startup, is based in Burlingame, and Neuralink operates in Fremont. Tesla also maintains significant manufacturing operations in Fremont and recently announced an engineering headquarters in Palo Alto.
Elon Musk’s decision to move the headquarters of SpaceX and X underscores his ongoing dissatisfaction with California’s legislative environment and his growing preference for the business climate in Texas. This development marks another chapter in Musk’s complex relationship with California, reflecting his broader strategic vision for his enterprises.
