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In a strategic move, Musk has shifted the primary bases of operations for SpaceX and Tesla from California to Texas.
Just under two years after acquiring the company, Elon Musk has announced the closure of X’s San Francisco headquarters.
The tech mogul claimed he had no other option but to close the iconic offices that housed the social media company for over a decade.
As part of his restructuring of the platform previously known as Twitter, Musk plans to launch an app offering social media and financial services.
He wrote in a post on X that “Operating in San Francisco is impossible if you’re processing payments. That’s why Stripe, Block (CashApp), and others had to relocate.”
While Musk seems to attribute the move to financial regulations, Stripe previously cited a shortage of office space as the primary factor behind its 2019 departure from San Francisco.
According to the New York Times, X CEO Linda Yaccarino informed employees in an email that the San Francisco headquarters will shut down within the next few weeks.
“This decision is significant and affects many of you, but it is the right choice for our company’s long-term success,” she wrote.
The move to shutter X’s San Francisco base comes on the heels of Musk’s decision to transfer SpaceX headquarters to Texas. This latest relocation echoes his 2021 move of Tesla’s headquarters, driven by frustrations with California’s laws.
Elon Musk has expressed strong opposition to a new gender identity law, describing it as the “final straw.” The legislation would bar schools from informing parents if their child chooses a different name or pronouns. This comes as Musk remains estranged from his transgender daughter, Vivian Henna Wilson, who initiated legal proceedings to remove his surname in 2022.
“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 wrote in a post in July.
“About a year ago, I made it clear to Governor Newsom that laws of this nature would compel families and companies to leave California to protect their children.”
The controversial billionaire has also relocated his personal residence to Texas, which offers more favourable tax laws compared to California.
X employees currently stationed at the San Francisco headquarters will be relocated to offices in San Jose and Palo Alto, according to an internal memo from CEO Linda Yaccarino. This comes as Elon Musk has previously announced plans to establish the company’s main headquarters in Austin, Texas.
