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Why is Elon Musk moving X and SpaceX from California to Texas?

Musk had moved Tesla headquarters from California to the Lone Star state in 2020

Elon Musk shifts SpaceX and X headquarters from California to Texas | Reuters

Elon Musk has announced that he will move the headquarters of X and SpaceX from California to Texas. This comes four years after Musk bought a tiny house in Boca Chica, Texas, after selling his other houses.

Musk had earlier moved Tesla headquarters from Palo Alto, California, to Austin, Texas, in the wake of the 2020 coronavirus lockdowns in Bay Area. He called the lockdown order "fascist" after he was forced to shut down Tesla's factory in Fremont, California.

In a post of X on Tuesday, the Tesla CEO said the decision to shift the headquarters of his two companies was prompted by California Governor Gavin Newsom's nod to a law that prevents schools from requiring employees to notify parents if students request to use different pronouns.

Calling the new bill the "final straw, said such laws attack both families and companies. “This is the final straw. Because of this law and the many others that preceded it, attacking both families and companies," he posted.

"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," he said in another post.

Musk said X will move its headquarters from San Francisco, California to Austin, Texas, adding that many will follow. He posted that he has had enough of "dodging gangs of violent drug addicts" just to get in and out of the building.

He added that SpaceX headquarters will move from California's Hawthorne to Texas's Brownsville. Brownsville is already home to Starbase, where SpaceX's development and testing site is located.

In another post, Musk said, “The state will take away your kids in California."

Last year, The Wall Street Journal reported that Musk was building a town in Texas county of Bastrop, which will have Montessori school and a private compound for tech mogul himself.

Musk's move to shift the headquarters of his companies has raised concerns about the impact on the employees at X and SpaceX as they will have to shift to Texas or quit their jobs since there are not allowed to work remotely.