"Patience is at its limit" Musk announces relocation of X and SpaceX headquarters to Texas... Why?

Elon Musk, CEO of Tesla, has announced plans to relocate the headquarters of SpaceX and X (formerly Twitter) from California to Texas.

[Image source=AP Yonhap News]

On the 16th (local time), Musk posted on his X account, stating, "SpaceX headquarters will move from Hawthorne, California, to Starbase, Texas," and "X headquarters will relocate from San Francisco to Austin, Texas."

This announcement came shortly after California Governor Gavin Newsom signed a new bill that prohibits schools from disclosing a student's gender identity or sexual orientation to parents without permission. Musk described it as "the last straw," emphasizing that he decided to move because "this law and many previous laws have attacked both families and companies."

This is the first time such a school LGBTQ+ protection law has been enacted in the United States. Supporters of the bill argue that it prevents forced outing of LGBTQ+ students and ensures their safety within schools, while critics claim the law infringes on parental rights. Musk highlighted that about a year ago, he warned Governor Newsom that the bill would drive families and businesses seeking to protect their children out of California. He further asserted, "The state will take your children away from you in California."

Regarding San Francisco, where X headquarters is located, Musk pointed out concerns about unsafe public order, saying he is "tired of avoiding violent drug-addicted gangs when going in and out of buildings." He added, "Many employees feel it is unsafe to commute into downtown San Francisco," and "They rarely report crimes to the police because nothing happens even if they do."

Tesla, the electric vehicle company led by Musk, has already moved its headquarters from California to Austin, Texas. Musk has also changed his residence from California, which has a high state income tax rate, to Texas, which has no state income tax, enjoying significant tax savings.

If the relocation proceeds in earnest, thousands of SpaceX and X employees based in California will inevitably be affected. Major foreign media noted that Musk ordered almost all employees to return to the office shortly after acquiring X, highlighting that remote work is not feasible. Greg Abbott, the Republican Governor of Texas, reposted one of Musk's tweets on X that day, stating that SpaceX's move "firmly establishes Texas as a leader in space exploration."