Elon Musk says he’s moving SpaceX headquarters to Texas amid frustration with California laws
Elon Musk announced Tuesday that he plans to move the California headquarters for SpaceX to Texas, citing California Gavin Newsom's progressive politics.
Elon Musk said he plans to move the California headquarters for SpaceX to Texas, after Gov. Gavin Newsom signed a bill into law that will bar school districts from notifying parents if their child uses different pronouns or identifies as a gender that's different from what’s on school records.
With the signing of AB 1955, Newsom has limited authority of public schools in the state and the rights of parents, critics have said. On Tuesday, Musk said he warned the Democratic governor a year ago "that laws of this nature would force families and companies to leave California to protect their children."
"This is the final straw," he wrote on X, his social media platform, in explaining his decision. "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."
SpaceX has a sprawling headquarters just outside Los Angeles where employees build and test rocket engine components, spacecraft and satellites. In 2021, Musk moved Tesla's headquarters from Northern California to Texas.
California remains that company's engineering hub.
"Gavin Newsom’s anti-parent agenda isn’t just bad for families – now it’s doing serious damage to California’s economy," California Assembly Republican Leader James Gallagher said in a statement. "With the highest unemployment rate in the nation, you’d think our governor would be doing everything possible to protect jobs. Instead, he’s pandering to extremists in his party by cutting parents out of their kids’ education and driving even more businesses to pack up for other states."
Newsom's press office has disputed criticism of the legislation.
"The bill ‘DOES NOT allow a student’s name or gender identity to be changed on an official school record without parental consent. DOES NOT limit a student’s ability to discuss their gender identity with their own family,’" it said in a Monday X post. "DOES NOT take away or undermine parents’ rights. Parents have a crucial role in discussions about a student’s LGBTQ+ identity, & AB 1955 does not prevent families from having these conversations."
In response to Musk's announcement, Newsom wrote on X: "You bent the knee," above the image of a social media post by former President Trump with a photo of him and Musk in the White House.
Assemblyman Chris Ward, who proposed AB 1955, said Musk has threatened to take his business elsewhere before.
"We’ve heard this heretical threat before when Mr. Musk announced he was moving business out of California during the pandemic only in reality to expand his operations in Silicon Valley," Ward said in a statement. "The fact is California has one of the most robust and productive economies in the world, and a talent base of skilled workers to match. We are proud to have a state that both stands up for the civil rights of others, while also providing a thriving environment in which to learn skills and prosper in entrepreneurial life –– just like the conditions that have helped his companies succeed."
Assemblyman Bill Essayli, a Republican who vehemently opposed the legislation, told Fox News Digital that "radical gender ideologues" in Sacramento, the state capital, are costing the state thousands of jobs and millions in tax revenue.
"They show no sign of stopping," he said. "Democrats in Sacramento are to blame for the ongoing attack on families, businesses, and common sense across California. I have committed my tenure in the Legislature to fight against the radical Democrat agenda that is pushing leaders like Elon Musk to leave our once Golden State. We must restore common sense in Sacramento."
Fox News Digital has reached out to Newsom's office.
The announcement by Musk came days after he endorsed former President Trump, after the former president was shot during a Pennsylvania campaign rally.