Elon Musk says SpaceX and X will relocate their headquarters to Texas

Elon Musk said Tuesday that he will move the headquarters of SpaceX and his social media company X from California to Texas in response to a new gender identity law signed by California Governor Gavin Newsom.

Musk’s announcement, made via a post on X, follows his decision in 2021 to move the headquarters of the electric car company Tesla from Palo Alto, California, to Austin, Texas, in the wake of coronavirus lockdowns in the Bay Area the year before. Now, two of Musk’s other major holdings are making symbolic moves out of California: SpaceX to the company’s Starbase launch facility near Brownsville, Texas, and X to Austin.

The new gender identity law, signed by Governor Newsom, a Democrat, on Monday, bars school districts in California from requiring teachers to disclose a change in a student’s gender identification or sexual orientation to their parents without the child’s permission. Musk wrote on X that the law was the “final straw” prompting the relocation to Texas, where the billionaire executive and his companies could take advantage of lower taxes and light-touch regulations.

Earlier this year, SpaceX transferred its incorporation from Delaware to Texas after a Delaware judge invalidated his pay package at Tesla.

“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,” Musk wrote Tuesday on X.

The first-in-the-nation law in California is a flashpoint in the struggle between conservative school boards concerned about parental rights and proponents for the privacy rights of LGBTQ people.

“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,” wrote Musk, who on Saturday endorsed former President Donald Trump, the Republican nominee in this year’s presidential election.

In a statement, Newsom’s office said the law “does not allow a student’s name or gender identity to be changed on an official school record without parental consent” and “does not take away or undermine parents’ rights.”

What does this mean for SpaceX?

Musk’s comments on X didn’t mention details about the implications of his companies’ moves to Texas. However, while Tesla’s corporate headquarters relocated to Texas in 2021, the company still produces cars in California and announced a new engineering hub in Palo Alto last year. The situation with SpaceX is likely to be similar.

Since Musk bought Twitter in 2022, he renamed it X, rewrote the network’s policies on content moderation, and laid off most of the company’s staff, reducing its workforce to around 1,500 employees. With vast manufacturing capacities, SpaceX currently has more than 13,000 employees, so a relocation for Musk’s space company would affect more people and potentially be more disruptive than one at X.

SpaceX’s current headquarters in Hawthorne, California, serves as a factory, engineering design center, and mission control for the company’s rockets and spacecraft. Relocating these facilities wouldn’t be easy, but SpaceX may not need to.