Elon Musk says he’s moving SpaceX, X headquarters from California

HAWTHORNE, Calif. - Tech billionaire Elon Musk announced that he is moving the headquarters of SpaceX and social media company X from California after the state banned school districts from requiring staff to inform parents about their children's gender identity change.

Democratic Gov. Gavin Newsom signed the first-in-the-nation law Monday, which bars districts from requiring school staff to disclose a student’s gender identity or sexual orientation to any other person without the child’s permission, with some exceptions. It also requires the state Department of Education to develop resources for families of LGBTQ+ students in grade 7 through high school. The law will take effect in January.

Musk, who has clashed with California over its regulations in the past, posted on X, "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 tech mogul also said that he is transferring X's headquarters from San Francisco to Austin.

"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.

Musk has previously sparred with Newsom and California authorities, notably during the early stages of the COVID-19 pandemic when he challenged Bay Area health officials over shelter-in-place orders. At that time, he threatened to move Tesla's operations to Texas or Nevada. Tesla later shifted its headquarters from Palo Alto to Austin.

Corporate business expert and emeritus professor at SFSU, Dr. Mitchell Lee Marks, said while it may not make a big impact on the state, which touts having the fifth-largest economy in the world, the loss could be felt in local economies like San Francisco, which has already taken a hit by the loss of corporations downtown.

For example, with fewer high earners, comes fewer crowded restaurants for lunch.

"I'm thinking now about the mom and pop shops, even the chains that employ people at minimum wage. These locations may have to shut down, may have to reduce hours, may hire fewer people," Marks said.

Musk is not the only one. There’s a growing trend of corporations leaving California as cost of living goes up.

"In the last several years, a couple of hundred businesses have left California. Interestingly, a full half of those businesses have relocated in Texas," Marks said.

What’s unique in this situation is a big corporation leaving because of a difference in politics, not just financial reasons.

In a response on X, Governor Gavin Newsom shared a screenshot from Donald Trump's previous post, implying Musk begged Trump for support for his tech projects, reading in part, "I could have said ‘drop to your knees and beg’ and he would have done it.’

In a witty response, Newsom writes "You bent the knee," insinuating Musk was just appeasing mister Trump for financial gain.

Newsom's press office account on X also posted, "The last time @ElonMusk ‘moved’ an HQ, @Tesla ended up expanding in California – even relocating their Global Engineering & AI headquarters to California because of our diverse, world leading talent."

There’s no word on a timeline for a move for X or SpaceX, which did not respond to requests for comment.

However, it’s likely certain facilities will stay put, like Tesla’s Fremont factory did, even after the headquarters were moved to Austin.

Musk also alluded to crime and drug issues around San Francisco's Civic Center, where X is located.

The law will take effect in January.