Billionaire Elon Musk has announced a headquarters relocation of his rocket company, SpaceX, and his social media platform, X, from California to Texas due to a new California law. The law prohibits schools from making rules that require staff to tell anyone, including parents either child’s gender identity is.

A representative of California’s governor said the law is supposed to protect children, an important role of the parents. In contrast, Mr. Musk has waxed quite contrary to the bill, called it ‘the last straw’ in a post on his social media platform.”.

Elon Musk had moved the headquarters of his electric car company, Tesla, to Texas in 2021. He is also domiciled in Texas, a state that does not charge any income tax.

There’s a huge debate going on in the United States over what schools should tell parents about their children’s gender identities. LGBTQ advocates argue students have a right to privacy. Others think parents should know what is going on with their children.

Elon Musk has a transgender daughter but said in the past that he supports trans people, having expressed frustration with pronouns as an “aesthetic nightmare.” Notably, his daughter, Vivian Jenna Wilson, filed to sever ties with him in 2022. According to her filing, she does not want to be related to him by any means, applying to change not just her name but her gender legally.

Mr. Musk said the headquarters of SpaceX would relocate from Hawthorne, California, to Starbase, Texas, in a post on his social media platform. He noted that he had come out against the law before its passage. California Gov. Gavin Newsom responded to Mr. Musk’s move on social media, writing, “You bent the knee,” and shared a shot of a 2022 post from Donald Trump saying Mr. Musk would “drop to [his] knees and beg” if Trump asked.

Historically, states have fought hard to attract companies to establish there headquarters, that come with high-paying jobs. SpaceX has more than 5,000 employees in California and a significant presence of it is also in Texas. “This cements Texas as the leader in space exploration,” said Texas Governor Greg Abbott.

Neither SpaceX nor X responded to a request for comment on whether the headquarters move would lead to job reductions in California.

This comes after Elon Musk announced support for Donald Trump to be president days after an attempted assassination on Trump’s life. When asked by a journalist, Mr. Musk responded with a meme indicating that the report was not true, only to seem to confirm some truth into it by responding positively to a post claiming he was pledging millions of dollars to help Trump get elected.

Elon Musk wants to move SpaceX and X to Texas in a nutshell, partly as a result of the new bill in California regarding transgender identity in schools. More broadly, this case evidences the debate over parents’ rights and children’s privacy in the U.S. The relocation again showcases Texas’s increasing role in space and further continues Elon Musk’s political involvement.