Billionaire Elon Musk will move the operations of X and SpaceX out of California and into Texas after Gov. Gavin Newsom declared he has signed into law a bill – Assembly Bill 1955 – prohibiting schools from enforcing rules that will inform parents if a child identifies as transgender.
"This is the final straw," Musk said in a post on X, the social media platform he bought in 2022. "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."
The CEO of SpaceX and Tesla then added that "X HQ will move to Austin" from San Francisco and that he's "had enough of dodging gangs of violent drug addicts just to get in and out of the building."
Musk further said in a separate post: "I did make it clear to Governor Newsom about a year ago that laws of this nature would force families and companies to leave California to protect their children." (Related: Musk slams expensive California school for infecting his transgender son with "woke mind virus.")
A.B. 1955 expressly prohibits California school districts from informing the parents of students if their children start self-identifying as transgender, such as by using pronouns that differ from their biological sex or asking to be referred to with different names. Schools will only be allowed to inform parents if they have the permission of students.
The law also overrides policies passed by local school boards that had required educators to tell parents if their children displayed signs of being transgender.
Early this year, California's Democrat Attorney General Rob Bonta released a legal advisory to schools in the state warning that informing parents of their children's decision to use distinct pronouns or change their gender – without the child's permission – probably violated the state constitution.
A.B. 1955 "the final straw" for Musk
It is also extremely significant for states like California when major companies like X and SpaceX relocate, as their budgets depend on taxing established companies and their employees.
California's rules have long drawn the anger of Musk. Back in 2020, Musk first stated that he had personally relocated to Texas, a move that helped spare him from California's high taxes.
The following year, he moved Tesla's headquarters to Austin from Silicon Valley over frustrations about local pandemic restrictions supposedly hindering operations. In 2022, Musk's tunnel-digging corporation, the Boring Company, similarly dumped California for Texas.
"Frankly, this is the final straw," Musk tweeted at that time.
The latest measure attracting Musk's contempt was signed into law Monday, July 15, by Newsom.
Newsom refused to give a comment, but his office mentioned that California law still requires parental consent for kids to change their names and that parents also are assured of access to education records.
Other Musk-owned corporations will remain in California for the time being, including xAI, Musk's startup that hopes to challenge OpenAI in the field of artificial intelligence. xAI is still based in Burlingame in the San Francisco Peninsula. His biotechnology company, Neuralink, will also for the time being remain in Fremont in the East Bay.
Furthermore, while Tesla has moved much of its business base to Texas, Musk has maintained important manufacturing operations in Fremont, and just last year declared the opening of an engineering headquarters for the electric car maker in nearby Palo Alto.
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