Elon Musk, the founder and leader of SpaceX, has announced this week that the company’s headquarters will be relocated from Hawthorne, California to Starbase, Texas due to a pro-LGBTQ+ law. It’s worth noting that this isn’t the first time Musk has moved his company to Texas in response to political issues. However, it remains unclear exactly what this move will entail for SpaceX and its operations.
After California Governor Gavin Newsome (Democrat) signed the state’s SAFTEY act into law, there has been a surge of posts regarding SpaceX and Musk’s relocation to Texas. The act prohibits schools from disclosing a student’s decision to change their pronouns or gender identity to their parents without their consent. However, schools are not authorized to alter a student’s school records, including their gender or name, without parental approval.
After facing numerous laws that were detrimental to both families and companies, Elon Musk has finally had enough. In a post on X, he declared that “This is the final straw.” As a result, SpaceX will be relocating its headquarters from Hawthorne, California to Starbase, Texas. Furthermore, he also stated that “𝕏 HQ will move to Austin.” The decision was made in response to the ongoing issues faced by the company due to the laws and regulations in California.
It is noteworthy that Musk has a child who is transgender and has legally changed their gender and name to create a separation from their father. Musk attributed the strained relationship to his child’s education.
In 2020, Musk found himself at odds with California state laws regarding mandatory Covid-19 restrictions and shutdowns for his Tesla facilities, a disagreement that lasted for some time. As a result, he grew increasingly fond of the republican state of Texas and eventually relocated there. Musk made the move in 2020, with Tesla’s headquarters following suit in 2021.
Since its inception in 2002, SpaceX has been headquartered in the vibrant city of Los Angeles. Its current location in Hawthorne has been operational since 2008, comprising a rocket factory, engineering hub, and mission control for its Falcon 9, Falcon Heavy, and Dragon missions.
SpaceX’s decision to relocate its headquarters has significant implications in terms of politics, taxes, and legal matters. However, the main challenge lies in the logistics of moving thousands of employees and all of its facilities, which would undoubtedly come at a high cost. Interestingly, even Tesla, which Elon Musk had previously voiced his desire to move out of California, still maintains its design studio, Fremont factory, and engineering hub in the state.
It appears that SpaceX employees who handle legal and financial matters will relocate to the facilities at Starbase. Nonetheless, the majority of workers and buildings will remain in Hawthorne until the Falcon program concludes.
The end has been on the horizon for some time now, but it’s still a long ways off. The majority of Starship’s manufacturing and operations have already migrated to Texas. Starbase serves as the hub for building, launching, and controlling Starship, while McGregor houses the newly constructed Raptor engine factory and serves as the testing site for all of SpaceX’s engines.
Speculations suggest that there might be an ulterior motive behind Musk’s decision to move to Texas. He has previously lauded the state’s political and economic environment. Moreover, Texas is reportedly planning to launch its own stock exchange in Dallas, which is said to be less stringent in terms of regulations and reporting standards compared to New York’s exchanges. This could potentially make it more attractive for Musk to take SpaceX and X public there, allowing him to retain control over the company and ensure transparency.
