Elon Musk promises to relocate X and SpaceX headquarters from California due to transgender privacy law

The tech billionaire has previously issued threats over political disagreements.

Elon Musk promises to relocate X and SpaceX headquarters from California due to transgender privacy law
SACRAMENTO, California — Elon Musk announced on Tuesday his plans to relocate the headquarters of social media platform X and aerospace company SpaceX from California. This decision came in response to Governor Gavin Newsom signing a new law aimed at safeguarding transgender and gay students in schools.

The legislation, signed by Newsom just a day prior, prohibits schools from mandating staff to inform parents about their children displaying transgender traits or divulging details about their sexual orientation. The measure was developed following the emergence of a parents’ rights movement in the state, with several school boards passing regulations over the past year that compelled teachers to disclose information if a student adopted a name or pronoun contradicting their assigned birth gender.

In reaction to the new law, Musk, who reportedly has a transgender daughter with whom he is estranged, expressed, “This is the final straw.” He cited the legislation and previous laws as key factors motivating his decision to relocate both companies, citing attacks on families and businesses over time.

Consequently, Musk indicated that SpaceX’s headquarters will shift from Hawthorne in Southern California to Starbase in Texas. Similarly, X, situated in downtown San Francisco, is set to transition to Austin as per Musk's announcement.

This recent move won't be the first time Musk has considered leaving California due to ideological disparities. Previously, amidst the pandemic, he sued the state and pondered moving Tesla's headquarters to Texas due to California's stringent Covid-19 restrictions. However, Musk eventually moved back some of Tesla's operations to California in early 2023, reinstating the engineering headquarters in Silicon Valley.

Although Musk pointed towards the new transgender protections as the main reason for the impending relocation, prior reports indicated his contemplation of moving X even before Newsom’s law enactment.

In recent years, Musk has evidently become more outspoken and conservative in his political stances, often conflicting with the Democratic leadership in California. Just days before, he disclosed intentions to allocate $45 million monthly to a political action committee supporting ex-President Donald Trump.

Musk's stance regarding the new transgender law received approval from another prominent California conservative, former Olympian Caitlyn Jenner, who came out as transgender in 2015.

As of now, Newsom's office has not responded to enquiries regarding the issue. Despite Musk’s criticism of the state, Newsom had previously praised the billionaire, expressing admiration and respect for him in 2021.

Scott Wiener, a member of the state Legislature’s LGBTQ caucus and a senator from San Francisco, characterized Musk as “a prime example of why children should not be compelled to come out to their parents.”

Rohan Mehta contributed to this report for TROIB News