A few weeks ago, Elon Musk revealed plans to move SpaceX and X to a new base in Texas. The billionaire’s establishments have been in California for some time. But he reconsidered his time there due to some reasons including a recent bill passed in the state. The CEO isn’t the first reputable company to make this move. Other firms including Chevron made strategic moves to relocate to Texas. Over the years, Texas has been home to many tech start-ups and other businesses. Sources confirmed that the city’s unique culture and rich blend of tech and art is responsible. Additionally, big and small-time firms find the environment welcoming for their businesses. Thus, many have moved from the San Francisco Bay Area and California.
Why Elon Musk Moved X To Texas
Like any smart business owner, Elon Musk shifted his base to protect his interests and investments. Back in July, the serial entrepreneur was displeased by a law accepted in California. Thus, he broke the news of moving his high-profile companies SpaceX and X. This move was due to the recent law passed in the State regarding the power school yield.
According to this law, a school is not allowed to mandate staff, parents, or guardians details of their ward’s gender. While the governor maintains that it is in the best interest of the kids, Elon Musk disagrees. Via a tweet, he highlighted his disappointment. It read:
“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.”
This is not the first time the 53-year-old would be nesting in Texas. In 2021, he reportedly moved Tesla’s HQ to the state. Elon Musk who is also a resident of Texas pays no income tax. Another reason for this move may be geared toward consolidating SpaceX’s already large base of operations in Texas. For now, the company already has over 5,000 staff in California. But there is no telling whether they will cut down the staff or move them to the new city. Musk’s reason may also be political. The business owner is all for former POTUS, Donald Trump.
So far, the pair are heavily against the domineering nature of the LGBTQ movement. Their grouse is with the movement targeting young kids and giving them up to life-changing body modifications. Following Elon Musk’s decision to exit, California’s governor, Giving Newsom taunted him for bending the knee to Trump. He referenced an old post where the president claimed Musk would bend the knee if he asked. Allegedly, the rise of crime in San Francisco equally consolidated Musk’s decision on the move. According to him, getting to work became such a bother as he often overlooks his shoulder.
Final Note
Relocation of these tech firms to a new environment might also be due to pressure from stockholders. Experts say that the demands from investors citing their interests may easily influence the relocation of an HQ.
#Clique, do you think Elon Musk made the right call?
