TEXAS, USA — Two major companies could be moving from California to Texas.
Elon Musk announced on Tuesday that X, formerly Twitter, and SpaceX will be moving their headquarters from San Francisco Hawthorne, California, to Austin and Brownsville, Texas.
Musk cites Gov. Gavin Newsom signing AB1955 into law as the reason for the move.
AB1955 primarily affects LGBTQIA+ students in California, banning public school employees from disclosing "any information related to a pupil’s sexual orientation, gender identity, or gender expression."
The bill is a first in the U.S., banning the "forced outing" of students to their parents. Critics of the bill claim this gives the state more agency over children than parents, while supporters believe it protects transgender youth.
In response, Musk announced he would be moving his multi-billion dollar operations to Texas. Musk has been a vocal detractor against gender-affirming care for transgender youth.
Gov. Greg Abbott praised the decision on X, saying the move "cements Texas as the leader in space exploration."
However, leaders on the West Coast leaders are voicing concerns that the move would have a direct impact on California's economy. Assembly Republican Leader James Gallagher sounded off at Gov. Gavin Newsom in a statement Tuesday afternoon.
"Gavin Newsom’s anti-parent agenda isn’t just bad for families - now it’s doing serious damage to California’s economy. With the highest unemployment rate in the nation, you’d think our governor would be doing everything possible to protect jobs. Instead, he’s pandering to extremists in his party by cutting parents out of their kids’ education and driving even more businesses to pack up for other states.”
Musk bought Twitter, now X, back in 2022 for $44 billion. The company is now valued at $19 billion, according to internal valuations. Musk vowed in a post on X that the company's headquarters would be moving to Austin, Texas, where Musk's Tesla Motors is currently based.
SpaceX is worth an estimated $210 billion, according to Forbes. The astronautics company, which designs spacecraft and rockets, was based in Hawthorne, California, a suburb outside of Los Angeles. Musk says it will be moving to "Starbase", a site outside of Brownsville, Texas, in Boca Chica State Park.
Forbes ranks Musk as the richest man in the world with a net worth of around $254.4 billion.
The move of these two massive companies could indicate a massive jump in Texas' economy, which is already the 8th largest in the world.
It could also mean a dip in California's economy, currently sitting at the 5th largest in the world. These two behemoths are just the latest in a wave of companies relocating from the Golden to the Lone Star State.