By Natalie Sherman, Business reporter, BBC News
Billionaire Elon Musk has said he will move the headquarters of two of his most high-profile companies, rocket firm SpaceX and social media platform X, from California to Texas.
He said the move was due to recent laws passed by the state – in particular a new law which prevents school staff from telling anyone, including parents, information about a child’s gender identity.
A spokesperson for the governor said the law keeps “children safe while protecting the critical role of parents”.
But Mr Musk called it “the last straw” in a post on his social media platform.
The billionaire previously moved Tesla’s headquarters to Texas in 2021 and he is a resident of the state – which has no income tax.
The issue of what schools should tell parents about their children’s gender identities has become a major topic of debate in the US.
LGBTQ advocates say students have a right to privacy, but others argue parents have a right to know what is happening with their children.
“It protects the child-parent relationship by preventing politicians and school staff from inappropriately intervening in family matters and attempting to control if, when, and how families have deeply personal conversations,” Brandon Richards told the Associated Press.
Mr Musk, who has a transgender daughter, has previously said he “supports trans” while expressing impatience with pronouns – calling them an “aesthetic nightmare”.
The billionaire’s daughter Vivian Jenna Wilson filed to cut ties with him in 2022.
She said she no longer wanted to “be related to my biological father in any way, shape or form” when applying to legally change her name and gender.
Last year, Mr Musk said he would lobby to criminalise transgender medical treatment.
“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,” he said in a post on X on Tuesday, noting that he had previously expressed his opposition to the bill.
California Governor Gavin Newsom criticised Mr Musk’s decision on social media.
“You bent the knee,” he posted, along with a screenshot of a 2022 post from Donald Trump which said Mr Musk would “drop to [his] knees and beg” if he asked.
States have historically competed aggressively to woo companies to establish headquarters, bringing with them high-paying corporate jobs.
SpaceX, which employs more than 5,000 people in California, according to state records, also already has a large base of operations in Texas.
In response to Mr Musk’s pledge, Greg Abbott, governor for Texas, said: “This cements Texas as the leader in space exploration.”
Neither SpaceX nor X responded to requests for comment about whether the decision to move headquarters would lead to job cuts in California.
The move comes after Mr Musk formally endorsed Donald Trump for president following the assassination attempt on him on Saturday.
The Wall Street Journal reported on Tuesday that Mr Musk would be directing $45m a month toward his campaign.
Mr Musk responded on X with a meme implying the report was false.
Additional reporting by Liv McMahon.
