Wednesday, July 16, 2025

Musk’s Exodus: California’s New Law Pushes Companies to Texas

Yonhap News

Elon Musk has announced plans to move the headquarters of social media company X and space exploration company SpaceX from California to Texas, following the relocation of Tesla.

On the 16th, The Wall Street Journal (WSJ) reported that Musk decided to move the headquarters of the two companies in response to California Governor Gavin Newsom’s signing a bill that prevents schools from notifying parents if a student declares themselves as homosexual.

Musk criticized Newsom, who has been mentioned as a potential candidate for the Democratic presidential nomination, saying to X, “This is the final straw.” He also highlighted other California laws he believes threaten other families and businesses.

Musk revealed that he had warned Newsom a year ago that these laws would drive families out of California to protect their children.

Musk plans to move the SpaceX headquarters from Hawthorne, California, to near Brownsville and the X headquarters from San Francisco to Austin, Texas.

X has had its headquarters in San Francisco for over a decade, before Twitter’s days, before Musk’s takeover in 2022.

Musk expressed frustration with the presence of “violent drug addicts” coming and going from the X headquarters in San Francisco.

Last year, Musk criticized San Francisco city officials and police for their lenient approach to crime, stressing that many Twitter employees felt unsafe commuting to downtown San Francisco. He also mentioned incidents where car windows were broken.

Tesla moved its headquarters to Texas in 2021 but left its engineering headquarters in Palo Alto, California.

While it remains uncertain if part of X will stay in San Francisco, if X and SpaceX relocate, only Neuralink and xAI will continue to operate in California.

Currently, about 1,800 employees work at Starbase, the rocket industry complex where the SpaceX headquarters will relocate, making it the area’s largest employer.

SpaceX has been conducting engine and hardware tests in McGregor, Texas, and Musk’s satellite internet company, Starlink, has completed a terminal manufacturing plant near Austin.

Meanwhile, Musk has officially endorsed former President Donald Trump, who narrowly escaped a shooting incident at a rally in Pennsylvania on Saturday.

He is also known to indirectly donate $45 million per month to Trump’s election campaign fund.

Many analyzed Musk’s actions, which show that he increasingly takes a conservative stance on social issues.

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