Frustrated with California laws, Musk will relocate the headquarters of SpaceX and X

2024-07-17 07:52:00, Kosova & Bota CNA

Frustrated with California laws, Musk will relocate the headquarters of SpaceX

Elon Musk

Elon Musk said Tuesday he will move the headquarters of two companies, SpaceX and X, from California to Texas, citing a new California gender identity law as the "final push" for the decision

The billionaire, who last week expressed support for Republican Donald Trump for the post of president of the United States, is placing in Texas almost all the headquarters of his companies, including the Tesla company in 2021.

The world's richest man, Mr. Musk changed his residence in 2021 from California to Texas, which has no state income tax for its residents.

A new law in California, which prohibits education departments from requiring teachers to notify parents when a student changes gender identity or sexual orientation, helped prompt Tuesday's announcement, Mr. Musk said.

"Because of this law and many others that came before it, it targets families and businesses," Mr. Musk said in explaining his decision on the X Network. He has a transgender daughter.

Over the past few years, the CEO of SpaceX and Tesla has been outspoken about politics in the country and has often criticized the administration of President Biden and the positions of Democrats on various issues, including transgender rights and immigration.

Historically, voters in California have supported Democratic candidates, while Texas is considered a strong Republican stronghold.

Mr Musk said SpaceX's main office would move to an existing facility in Boca Chica, Texas, while X would move to Austin. It is unclear to what extent his companies' jobs and facilities will be moved from California to Texas.

The company SpaceX has a magnificent headquarters near the city of Los Angeles in California, an important center where thousands of employees build the powerful Falcon 9 rocket, Dragon capsules for astronauts and several satellites.

In 2021, Mr Musk moved Tesla's headquarters from California to Texas, but last year said California would remain the center for engineering. Earlier this year, he moved SpaceX's incorporation documents out of Delaware, following a judge's ruling that struck down Mr. Musk's $56 billion compensation plan from Tesla, as agreed in a 2018 vote. from the shareholders./ Voa