Elon Musk, the world’s richest man, recently made headlines by relocating the headquarters of his companies, X (formerly known as Twitter) and SpaceX, from California to Texas. The decision was triggered by California Governor Gavin Newsom’s signing of a new student gender identification law, which Musk referred to as “the final straw.” The law, which went into effect this month, prohibits school districts from requiring teachers to inform parents of a student’s changes in gender identity or sexual orientation without the child’s consent.
Additionally, it mandates the state’s Department of Education to develop supportive materials for LGBTQ+ students. Musk announced on X, “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.”
Tensions with California Officials
This move comes amid growing tensions between Musk and California officials. Following the announcement, San Francisco city attorney David Chiu expressed relief at the decision, stating, “I share the perspective that most San Franciscans have, which is good riddance.” San Francisco Mayor London Breed echoed a similar sentiment, revealing that she had met with Musk “several months ago” but did not extend offers to keep X in the city, adding, “I’m not going to beg anybody.”
The relocation decision also follows Musk’s criticism of San Francisco’s “crazy gross receipts city tax,” which he claimed made it “impossible for financial companies to operate” in the city. Musk’s decision to move X and SpaceX out of California marks a significant shift in the tech landscape and reflects his ongoing discontent with the state’s policies.
A Long-Standing Frustration with California
This is the final straw.
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. https://t.co/cpWUDgBWFe
— Elon Musk (@elonmusk) July 16, 2024
Musk’s departure from California is not a sudden move but rather the culmination of long-standing frustrations. In 2020, he famously announced on X that he was “selling almost all physical possessions” and would “own no house.” True to his word, Musk listed and sold all seven of his California properties, which had a combined asking price of over $100 million. One of the most notable properties was a 16,251-square-foot mansion in Los Angeles, featuring six bedrooms, eleven bathrooms, a two-story library, wine cellar, tennis court, pool, and home cinema. The mansion, built in a French château-esque style, was sold for a staggering $29 million, according to Zillow.
Embracing a Minimalist Lifestyle in Texas
Since then, Musk has embraced a minimalist lifestyle, residing primarily in a $50,000 prefabricated home in Boca Chica, Texas, near his SpaceX headquarters. Manufactured by Boxabl, the 20-by-20-foot foldable house, known as a Boxabl Casita, is organised like a studio apartment with a combined living and bedroom area, a fully equipped kitchen, and a bathroom. Compared to his previous luxurious homes, Musk’s current residence is notably simple and unadorned, reflecting his shift toward a more streamlined and focused lifestyle. Musk’s biographer, Walter Isaacson, shared a rare glimpse inside the house on social media, noting that it serves as Musk’s primary residence where he conducts meetings and makes phone calls.
Musk’s relocation of X and SpaceX to Texas underscores his broader strategic shift towards the Lone Star State, where Tesla’s headquarters also moved from Palo Alto, California, to Austin in late 2021. Texas offers a more favourable tax environment, fewer regulatory challenges, and ample space for Musk’s expansive industrial projects, making it an ideal location for his business operations.
