Billionaire Elon Musk has announced plans to relocate the headquarters of his companies, SpaceX and social media platform X, from California to Texas.
This decision comes in response to a new California law that prohibits schools from requiring staff to disclose a child’s gender identity to parents.
“This is the last straw,” Musk posted on social media.
Musk had previously moved Tesla’s headquarters to Texas in 2021, following threats to do so during the Covid-era lockdowns.
Since then, he has become increasingly active in US politics, recently endorsing Donald Trump for president and reportedly directing $45 million a month to Trump’s campaign.
Musk dismissed the report with a post on Twitter/X showing “fake gnus.”
The debate over what schools should disclose to parents about their children’s gender identities is a contentious issue in the US.
LGBTQ advocates argue for students’ right to privacy, while others believe parents have a right to know about their children’s identities.
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Musk, who has a transgender daughter, has expressed support for transgender individuals but has criticized the use of pronouns as an “aesthetic nightmare.”
Last year, he stated his intention to lobby against transgender medical treatments for minors.
Due to the new California law and other regulations Musk opposes, he announced on X that SpaceX’s headquarters will move from Hawthorne, California, to Starbase, Texas. He also cited safety concerns in San Francisco as a reason for moving X’s headquarters to Austin.
California Governor Gavin Newsom, who has been mentioned as a potential Democratic candidate to replace President Joe Biden, criticized Musk’s decision.
Newsom’s spokesperson, Brandon Richards, said the bill aims to keep children safe while preserving the critical role of parents.
States often compete to attract companies’ headquarters, which bring high-paying jobs.
Musk, already a Texas resident, benefits from the state’s lack of income tax. SpaceX employs over 5,000 people in California and already has significant operations in Texas.
In response to Musk’s announcement, Texas Governor Greg Abbott said, “This cements Texas as the leader in space exploration.”
According to BBC, neither SpaceX nor X have commented on whether the headquarters move will result in job cuts in California.
