Off to the Lone Star State: Musk plans to move Space X and X to Texas
The multi-billionaire tweeted on X about the move from California to Texas, but for strange reasons
Words: Charlie Bentley
Elon Musk has decided to trade in the glitz and glamour of California for the wide-open spaces of Texas. Yes, you heard it right: SpaceX and X (formerly Twitter) will be packing their bags and heading to the Lone Star State. But what's behind this high-stakes game of corporate musical chairs? The reason seems quite bizarre and not exactly “business-minded.”
Elon Musk, never one to shy away from a headline, has stated that his move is driven by California's new gender identity laws. Governor Gavin Newsom's recent legislation, which bars schools from informing parents about their children's gender identity changes, was the "final straw," according to Musk. This isn't the first time Musk has butted heads with California's political climate—he's been vocal about his disdain for what he views as the state's overreaching policies.
But these comments might just be a facade for the move as not everyone is buying Musk's socio-political indignation. Edward Niedermeyer, author of "Ludicrous: The Unvarnished Story of Tesla Motors," suggests that Musk's motivations are less about moral high ground and more about strategic advantage. "I think Musk has made the calculation that he's gotten all the benefits he's likely to get out of the state and he's moving on to the next one," Niedermeyer told the Los Angeles Times. California has been a gold mine for Musk, with substantial tax credits, subsidies, and training grants bolstering his ventures. Critics argue that Musk is now biting the hand that fed him, abandoning the state after reaping massive benefits.
Musk's move to Texas isn't just a knee-jerk reaction to political disagreements. It's a calculated business strategy. Texas offers a much friendlier business climate, complete with lower taxes and fewer regulations. There's no state income tax, which sweetens the pot for both Musk and his employees. And let's not forget the pandemic showdown in 2020 when Alameda County officials wouldn't let him reopen his Tesla plant. Musk's response? A big, bold "see ya later" as he shifted Tesla's headquarters to Austin.
Despite the cowboy allure of Texas, not all SpaceX employees are keen on trading their surfboards for Stetsons. Reports indicate that some workers are hesitant to make the move, opening the door for competitors like French aerospace company Latitude to swoop in. Latitude's CEO, Stanislas Maximin, wasted no time, taking to LinkedIn to invite disgruntled SpaceX employees to join his team near Paris. "For SpaceX employees misaligned with these values and looking to join an inclusive and highly ambitious rocket company in a great living city near Paris, my DMs are open," he posted. It seems the California-Texas tug-of-war is creating opportunities for others to capitalise on the discord.
So, what does this mean for the future of SpaceX and X? Musk plans to move SpaceX’s main office to an existing facility in Boca Chica, Texas, and X's headquarters to Austin. However, the extent of this relocation remains unclear. SpaceX's sprawling headquarters near Los Angeles is a major aerospace hub, where thousands of employees build the company's workhorse Falcon 9 rocket and Dragon astronaut capsules. Similarly, California will continue to be Tesla's engineering hub despite the headquarters shift. In the end, whether Musk’s move is driven by political principles or pure business pragmatism, one thing is clear: the tech titan is steering his cattle to Texas.
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