Billionaire Elon Musk announced plans to relocate the headquarters of two of his prominent companies, rocket firm SpaceX and social media platform X, from California to Texas.
Musk cited recent legislation in California, particularly a new law restricting school staff from disclosing information about a child’s gender identity to anyone, including parents, as a primary reason for the move.
A spokesperson for the governor defended the law, emphasizing its role in safeguarding children while upholding parental involvement.
But Mr Musk called it “the last straw” in a post on his social media platform.
Elon Musk relocated Tesla’s headquarters to Texas in 2021, where he also resides due to the state’s lack of income tax.
The disclosure of information by schools concerning children’s gender identities has sparked significant debate across the United States.
Advocates for LGBTQ rights assert that students deserve privacy, while others contend that parents have a right to be informed about their children’s circumstances.
“It protects the child-parent relationship by preventing politicians and school staff from inappropriately intervening in family matters and attempting to control if, when, and how families have deeply personal conversations,” Brandon Richards told the Associated Press.
Mr. Musk, who has a transgender daughter, has previously stated his support for transgender individuals, although he has expressed frustration with pronouns, describing them as an “aesthetic nightmare.”
In 2022, the billionaire’s daughter, Vivian Jenna Wilson, filed paperwork to legally sever ties with him.
She expressed her desire to no longer be associated with her biological father in any capacity while applying for a legal name and gender change.
Last year, Mr Musk said he would lobby to criminalise transgender medical treatment.
“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,” he said in a post on X on Tuesday, noting that he had previously expressed his opposition to the bill.
California Governor Gavin Newsom criticised Mr Musk’s decision on social media.
“You bent the knee,” he posted, along with a screenshot of a 2022 post from Donald Trump which said Mr Musk would “drop to [his] knees and beg” if he asked.
Moving headquarters
States have historically engaged in fierce competition to attract companies to establish their headquarters, which bring high-paying corporate jobs with them.
According to state records, SpaceX, which employs over 5,000 people in California, already maintains a substantial operational presence in Texas.
In response to Mr. Musk’s announcement, Texas Governor Greg Abbott declared, “This solidifies Texas as the forefront of space exploration.”
Neither SpaceX nor X responded to inquiries about whether relocating their headquarters would result in job reductions in California.
The decision to move comes after Mr. Musk formally endorsed Donald Trump for president, following an assassination attempt against him on Saturday.
The Wall Street Journal reported on Tuesday that Mr. Musk would be allocating $45 million per month towards his campaign.
Mr. Musk responded on X with a meme suggesting that the report was inaccurate.