Musk to relocate SpaceX, X over new California trans law

Elon Musk announced on X, formerly Twitter, that he plans to relocate the headquarters of both SpaceX and X to Austin, Texas. This decision comes in response to a new California law regarding transgender rights in schools. The law prohibits school districts from notifying parents about a student's gender identity change without the student's consent. Musk said "this is the final straw" in an X post outlining his relocation plans.

Yahoo Finance senior reporter Pras Subramanian breaks down the details, exploring the potential implications for workers at these companies.

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This post was written by Angel Smith

Transcripción del vídeo

Elon Musk is relocating Space X and X Corp headquarters to Texas from California and opposed responding to a new California law barring school districts from notifying parents of students gender change.

The entrepreneur saying, quote, this is the final straw, SpaceX will now move its headquarters from California to Texas, Texas.

And in another post saying X Corp will be moving to a specifically.

So here to discuss, we've got a very pro Subramani pro we were just talking a little bit about the likelihood of this being able to actually happen.

What do we know?

Yes.

So, you know, Musk has already moved the state of incorporation for, for spacex to Texas already.

He's already done that.

But moving the headquarters is a whole other thing.

It's a much bigger deal, you know, space, this is a rather large HQ uh in Hawthorne, California, which is right by LAX, which is home to the US aerospace industry, right?

You have a lot of defense contractors out there.

Like I said, the massive uh space X uh HQ is there.

Um You can't just leave that, you can't just leave that whole kind of uh crucial area plus Vandenberg Air Force bases in Santa Barbara where they launch a lot of their s their satellites from there, the rockets from there.

Again, you wanna be close to your space launching facilities and this is a, a pretty big, um, sort of uh value add there that they have based on the fact that they're so close to the Vandenberg Air Force Base and look the NASA jet propulsion laboratories are, you have the whole industry there where all the engineers are through, all the, the the knowledge is to leave and up route everyone to Texas.

I don't think it's very possible you might move some officers to Texas but I cannot see them in a short time moving everything to Texas from spacex headquarters.

Is this a move that you think could potentially backfire just given the complexity of moving and from personnel to the equipment to their space.

There.

Is this a move that could potentially maybe make it a bit harder for SpaceX to compete down the road?

I mean, it's, it's, you have a lot of people that are talent that live in that area and they work at Lockheed Martin, they can work at any other, they can work at Boeing, they could work at any other company that's working in aerospace down there.

Look at X, right.

I think someone tweeted that you can say we're gonna move to Texas.

They don't, people don't leave.

Um If you're a software engineer at, at X, you can just move to another software company.

So I think that's sort of the big problems the talent.

Are they gonna wanna go leave their comfort, the comfort in California to move to, to Texas and Boca Chica and places like that?

I don't know.

It's hard, hard to say, can he just rebrand though one of the offices in Texas and just say now this is the headquarters that's like a one day change.

You could do that.

Have your CEO have a seat there and stay there.

And this is our headquarters.

We still have operations in California.

That's my take.

I mean, I, I'm just sort of looking at it from a very practical point of view.

I think that's what's going to happen.

This is all a lot of song and dance kind of pony show here with Trump being such a big part of the news cycle right now.

We'll see what happens in a couple months.

He certainly will, but I'm with you.

I think that seems like the most likely outcome at this great stuff.

Thanks.