“Have a good trip!” San Francisco authorities react to Elon Musk’s flight to Texas, citing Governor Newsom

Elon Musk, the world's richest man, recently made headlines when he moved the headquarters of his companies X (formerly known as Twitter) and SpaceX from California to Texas. The decision was prompted by California Governor Gavin Newsom's signing of a new student gender identity law, which Musk called “the last straw.” The law, which went into effect this month, prohibits school districts from requiring teachers to inform parents of changes in a student's gender identity or sexual orientation without the child's consent.

In addition, it requires the state's Department of Education to develop supportive materials for LGBTQ+ students. Musk announced on X: “Due to this law and many other laws before it that attacked both families and businesses, SpaceX will now be moving its headquarters from Hawthorne, California to Starbase, Texas.”

Tensions with Californian authorities

This move comes amid growing tensions between Musk and California authorities. Following the announcement, San Francisco City Attorney David Chiu expressed relief at the decision, stating, “I share the view of most San Francisco residents that it is good to get rid of him.” San Francisco Mayor London Breed made similar comments, revealing that she met with Musk “several months ago” but did not make him any offers to keep X in the city. She added, “I'm not going to beg anyone.”

The decision to relocate also follows Musk's criticism of San Francisco's “crazy city tax on gross receipts,” which he said makes it “impossible for financial companies to operate in the city.” Musk's decision to move X and SpaceX out of California marks a significant shift in the technology landscape and reflects his ongoing dissatisfaction with the state's policies.

A long-standing frustration with California

Musk's departure from California is not a sudden move, but rather the culmination of long-standing frustrations. In 2020, he announced on X that he would “sell almost all material possessions” and “not own a home.” True to his word, Musk listed and sold all seven of his California properties, which together had an asking price of over $100 million. One of the most notable properties was a 1,500-square-foot Los Angeles mansion with six bedrooms, 11 bathrooms, a two-story library, a wine cellar, a tennis court, a pool and a home theater. Built in the style of a French chateau, the villa sold for a staggering $29 million, according to Zillow.

Maintaining a minimalist lifestyle in Texas

Since then, Musk has maintained a minimalist lifestyle, living primarily in a $50,000 prefab home in Boca Chica, Texas, near his SpaceX headquarters. Manufactured by Boxabl, the 6-by-6-meter folding home, known as the Boxabl Casita, is furnished like a studio apartment with a combined living and sleeping area, full kitchen and bathroom. Compared to his previous luxury homes, Musk's current abode is remarkably plain and unadorned, reflecting his shift toward a more streamlined and focused lifestyle. Musk's biographer Walter Isaacson shared a rare glimpse inside the house on social media, noting that it is Musk's primary residence, where he holds meetings and makes phone calls.

Musk's move of X and SpaceX to Texas underscores his broader strategic focus on the Lone Star State, where Tesla's headquarters also moved from Palo Alto, California, to Austin in late 2021. Texas offers a more favorable tax environment, fewer regulatory challenges, and ample space for Musk's extensive industrial projects, making it an ideal location for his operations.