Tesla Inc. chief executive Elon Musk has announced plans to relocate the headquarters of US social media giant X Corp. and aerospace company SpaceX Corp. to Texas from California, following a revision to a gender identification law in the Golden State.
The move would transfer a significant part of the billionaire’s businesses to the Lone Star state. Musk said he intends to relocate X to Austin from San Francisco, while SpaceX will move to its Starbase launch site in Cameron County from Hawthorne.
He also hinted at future relocations for other businesses he oversees.
In 2021, the world’s richest man relocated Tesla’s corporate headquarters to Austin from Palo Alto. He also switched his private residence to Texas from California, where individuals are not charged a state income tax.
Musk Disapproves California’s New Gender Identity Law
Musk’s planned relocation came as California Governor Gavin Newsom signed on Monday a new law prohibiting the employment of transgender notification requirements by school districts in the state in a bid to keep LGBTQ students safe in unwelcoming environments.
The revision bars school rules that necessitate informing parents about their child’s intentions to change pronouns or identify as transgender. Teachers and other school personnel will not be allowed to share a student’s gender identity or sexual orientation with other people without the child’s consent.
Newsom’s spokesperson, Brandon Richards, stated that the legislation would help protect the bond between parents and their children by preventing inappropriate political and school involvement in family matters and how they choose to have such personal talks.
However, the billionaire entrepreneur expressed disappointment over the change, saying it was the “final straw,” prompting the relocation. The new law and other similar policies prior were hurting families and companies, according to Musk.
Earlier reports suggested that the X owner might have considered moving the social media firm’s headquarters ahead of the bill signing.
Newsom did not comment on the two companies’ relocations from California. He, however, called attention to Musk’s support for Republican presidential candidate Donald Trump in his post on X, which included a screenshot of the former US president’s 2022 post criticizing the Tesla chief executive.
